Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced today (Thursday) that the total assets of the Exchange Fund amounted to HK$1,162.7 billion on 31 October 2006.

The figure is included in the Exchange Fund Abridged Balance Sheet, which is released monthly together with the Currency Board Account.

At the end of October 2006 the total assets of the Exchange Fund, at HK$1,162.7 billion, were HK$18.5 billion higher than at the end of September 2006. Foreign currency assets increased by HK$10.9 billion and Hong Kong dollar assets increased by HK$7.6 billion.

The rise in foreign currency assets was due mainly to valuation gains on foreign currency investments, and interest and dividend income from foreign currency assets. The rise in Hong Kong dollar assets was due mainly to an increase in Exchange Fund Bills and Notes issued but not yet settled and valuation of Hong Kong equities held by the Exchange Fund.

The Currency Board Account shows that the Monetary Base at the end of October 2006 was HK$292.1 billion, a decrease of HK$0.9 billion, or 0.3%, from the end of September 2006. The decline was due mainly to a decrease in Certificates of Indebtedness which was partly offset by an increase in the market value of Exchange Fund Bills and Notes outstanding.

The Backing Assets decreased by HK$0.4 billion, or 0.1%, to HK$326.0 billion. The decline was attributable mainly to the redemption of Certificates of Indebtedness in the Monetary Base and revaluation losses, which were partly offset by interest from investments. Reflecting this, the backing ratio rose from 111.40% at the end of September 2006 to 111.60% at the end of October 2006.

Attachment
Annex 1 : Abridged Balance Sheet of the Exchange Fund
Annex 2 : Currency Board Account

For further enquiries, please contact:
Hing-fung Wong, Officer (Press), at 2878 1802 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
30 November 2006

At present, four press releases relating to the Exchange Fund's data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund's Special Data Dissemination Standard (SDDS). The fourth press release, on the Exchange Fund's Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA's policy of maintaining a high level of transparency. For the month of November2006, the scheduled dates for issuing the press releases are as follows: