Key Information

inSight
Speeches
Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Zeti Akhtar Aziz
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Carmen Chu
Alan Au
Press Releases
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
Speeches
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Others
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Others
Guidelines and Circulars
Guidelines
Circulars
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
515.5995

Press Releases

Record of Discussion of the Meeting of
the Exchange Fund Advisory Committee
Sub-Committee on Currency Board Operations held on 3 September 1999

(Approved for Issue by the Exchange Fund Advisory Committee on 23 September 1999)

Currency Board Operations for the Period 2 - 20 August 1999

The Sub-Committee noted that during the period under review the market exchange rate for the Hong Kong dollar had eased from 7.7620 to 7.7641, which broadly matched the movement of the convertibility rate in respect of the Aggregate Balance. Escalating tensions across the Taiwan Straits coupled with renewed rumours of an RMB devaluation in August had contributed to a weakening of the exchange rate and a triggering of the Convertibility Undertaking in the first and third weeks of August. This had sent the Aggregate Balance briefly to negative levels. Members noted that, influenced by expectations of a rise in US rates, interbank interest rates had shown a general increase, but interest rate volatility had slightly decreased. The Sub-Committee observed that the operations of the Currency Board system during the period under review had demonstrated that the system was working well. The Sub-Committee further noted that changes in the Monetary Base throughout the period had been fully matched by corresponding changes in foreign reserves, in accordance with the rules of the Currency Board system. The report on Currency Board operations for the period under review is at Annex A.

Liquidity Arrangements for the Money Market in the Year 2000 Context

The Sub-Committee considered proposals to increase the supply of liquidity to the money market to relieve possible market tightness arising out of Year 2000 positioning. These proposals provided an elaboration on the general strategy discussed by the Sub-Committee at its meeting in July. The proposals included a term repo facility to licensed banks and an enlarged discount window. The Sub-Committee gave its support to these proposals. It also considered that the exceptions to the Currency Board rules were acceptable in the special circumstances of the Year 2000 problem. The Sub-Committee advised that banks should be encouraged first to resort to their own liquidity arrangements as far as possible. The Sub-Committee further advised that, following the Year 2000 event, the unwinding of any special liquidity arrangements under the proposed measures should be clearly reflected in the reports on Currency Board operations early in 2000.

Report on Selected Millennium Indicators

The Sub-Committee noted an information paper on selected market indicators reflecting the Year 2000 positioning of market participants. It was noted that the indicators would be updated regularly for the information of the Sub-Committee.

Recent Developments in the Argentinian Currency Board System

The Sub-Committee was briefed by Mr John Greenwood on recent developments in the Argentinian Currency Board system.

Last revision date: 1 August 2011
ABOUT THE HKMA
The HKMA
Tender Invitations
Careers@HKMA
Legislative Council Issues
Links
The HKMA Information Centre
KEY FUNCTIONS
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
PUBLICATIONS & RESEARCH
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
Research
MARKET DATA & STATISTICS
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
KEY INFORMATION
Press Releases
Speeches
Guidelines & Circulars
Forthcoming Events
inSight
OTHER INFORMATION
Information in Other Languages (Bahasa Indonesia, हिन्दी, नेपाली, ਪੰਜਾਬੀ, Tagalog, ไทย, اردو)
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery