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
Currency Board Sub-Committee held on 17 January 2019

(Approved for Issue by the Exchange Fund Advisory Committee on 31 January 2019)

Report on Currency Board Operations (9 October – 31 December 2018)

  1. The Sub-Committee noted that the Hong Kong dollar (HKD) exchange rate traded within a range of 7.8062 – 7.8459 against the US dollar (USD) during the review period. The HKD firmed against the USD since November, due to unwinding of interest carry positions as liquidity conditions tightened amid year-end funding demand. Towards the year-end, the HKD eased again, partly associated with repatriation of proceeds raised in initial public offerings, note-issuance activities ahead of holidays, and some re-building of interest carry positions. During the review period, the HKD interbank interest rates generally picked up, reflecting the expectation of US rate hikes and anticipated funding needs towards the year-end.
  2. The Sub-Committee noted that the Aggregate Balance remained little changed during the review period. The Monetary Base increased to HK$1,632.87 billion, mainly driven by an increase in the Certificates of Indebtedness.
  3. The Sub-Committee further noted that, in accordance with the Currency Board principles, all changes in the Monetary Base had been fully matched by changes in foreign reserves.
  4. The Report on Currency Board Operations for the period under review is at Annex.

 

Monitoring of Risks and Vulnerabilities

  1. The Sub-Committee noted that in the US, uncertainties over the monetary policy outlook and US-China trade tensions could point to heightened financial market volatility ahead.
  2. The Sub-Committee noted that in Europe, economic policy and political uncertainties (e.g. Brexit) could aggravate the region’s waning cyclical growth momentum to increase the risks of a sharper-than-expected economic slowdown.
  3. The Sub-Committee noted that in Mainland China, the renminbi rebounded following the US-China agreement to step back from additional tariffs. However, its growth momentum weakened and outlook became more uncertain.
  4. The Sub-Committee noted that in Hong Kong, the economy slowed further in recent months amid heightened uncertainty stemming from the US-China trade tensions and the pace of US interest rate normalisation. The property market declined during the period and could face a number of headwinds in the near term.

 

An Event Study on the Linked Exchange Rate System (LERS) Operations

  1. The Sub-Committee noted a study which investigated the effects of the triggering of the weak-side Convertibility Undertaking and the additional issuances of Exchange Fund Bills on the HKD exchange rate and interest rates. The study provided empirical support that the LERS had been functioning according to its design.

 

Hong Kong Monetary Authority
26 February 2019

Last revision date: 26 February 2019
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