The Hong Kong Monetary Authority (HKMA) announced that the
official foreign currency assets of Hong Kong were US$88.7 billion
at the end of October 1998. This slight increase from the $88.4 bn
at end-September was due mainly to investment gains. In terms of
foreign currency reserves ranking, Hong Kong remains the third
largest in the world, after Japan and Mainland China (Table 1).
The foreign currency assets of Hong Kong are held in the
Exchange Fund and the Land Fund. As at the end of October, on a
settled basis, the foreign currency assets held in the Exchange
Fund were US$69.4 billion (end-September: US$69.3 billion) and in
the Land Fund were US$19.3 billion (end-September: US$19.1
billion).
The total foreign currency assets of US$88.7 billion represent
over seven times the currency in circulation or about 40% of Hong
Kong dollar M3, one of the highest ratios in the world.
Including unsettled foreign exchange contracts, the foreign
currency assets held in the Exchange Fund and the Land Fund were
US$69.3 billion (end-September: US$69.2 billion) and US$19.2
billion (end-September: US$19.0 billion) respectively (Tables 2 and 3).
Hong Kong Monetary Authority
26 November 1998
TABLE 1
| Foreign Exchange Reserves
Ranking |
| - |
- |
US$BN |
As at end of |
| (1) |
Japan |
214.0 |
Oct 1998 |
| (2) |
China |
143.7 |
Oct 1998 |
| (3) |
Hong Kong |
88.7* |
Oct 1998 |
| (4) |
Germany |
86.4 |
Sept 1998 |
| (5) |
Taiwan |
84.2 |
Sept 1998 |
| (6) |
US |
77.2 |
Sept 1998 |
| (7) |
Singapore |
72.4 |
Sept 1998 |
| (8) |
Spain |
70.7 |
Sept 1998 |
| (9) |
Korea |
46.9 |
Sept 1998 |
| (10) |
France |
46.2 |
Sept 1998 |
Source: HKMA, IMF,
Reuters
* Detailed breakdown at Tables 2 and 3
TABLE 2
| Exchange Fund -- Foreign Currency Reserves
(US$ billion) |
| . |
Excluding Unsettled FX Contracts |
Unsettled FX Contracts |
Including Unsettled FX Contracts |
| March 95 |
52.4 |
(0.2) |
52.2 |
| June 95 |
53.6 |
- |
53.6 |
| September 95 |
51.8 |
2.8 |
54.6 |
| December 95 |
55.4 |
1.8 |
57.2 |
| March 1996 |
58.1 |
1.7 |
59.8 |
| June 96 |
57.3 |
2.7 |
60.0 |
| September 96 |
55.4 |
6.7 |
62.1 |
| December 96 |
63.8 |
5.7 |
69.9 |
| February 1997 |
63.8 |
4.3 |
68.1 |
| March 1997 |
63.4 |
4.3 |
67.7 |
| April 1997 |
63.6 |
4.0 |
67.6 |
| May 1997 |
66.6 |
1.8 |
68.4 |
| June 1997 |
67.6 |
2.1 |
69.7 |
| July 1997 |
66.1 |
2.5 |
68.6 |
| August 1997 |
69.5 |
0.1 |
69.6 |
| September 1997 |
71.4 |
0.3 |
71.7 |
| October 1997 |
74.0 |
0.4 |
74.4 |
| November 1997 |
79.1 |
0.4 |
79.5 |
| December 1997 |
75.3 |
0.3 |
75.6 |
| January 1998 |
80.3 |
- |
80.3 |
| February 1998 |
78.6 |
- |
78.6 |
| March 1998 |
78.5 |
0.1 |
78.6 |
| April 1998 |
77.7 |
- |
77.7 |
| May 1998 |
77.9 |
- |
77.9 |
| June 1998 |
77.9 |
- |
77.9 |
| July 1998 |
77.8 |
(0.5) |
77.3 |
| August 1998 |
73.4 |
(4.4)* |
69.0 |
| September 1998 |
69.3 |
(0.1) |
69.2 |
| October 1998 |
69.4 |
(0.1) |
69.3 |
* This arises from "spot" transactions ( that is,
settlement in two days) done at the end of August for settlement at
the beginning of September.
TABLE 3
| Land Fund -- Foreign Currency Reserves (US$
billion) |
| . |
Excluding Unsettled FX
Contracts |
Unsettled FX Contracts |
Including Unsettled FX
Contracts |
| July 1997 |
15.6 |
0.1 |
15.7 |
| August 1997 |
15.8 |
0.1 |
15.9 |
| September 1997 |
16.7 |
0.4 |
17.1 |
| October 1997 |
17.4 |
(0.1) |
17.3 |
| November 1997 |
17.4 |
0 |
17.4 |
| December 1997 |
17.5 |
0.1 |
17.6 |
| January 1998 |
17.8 |
- |
17.8 |
| February 1998 |
18.1 |
- |
18.1 |
| March 1998 |
18.3 |
- |
18.3 |
| April 1998 |
18.5 |
(0.1) |
18.4 |
| May 1998 |
18.5 |
- |
18.5 |
| June 1998 |
18.6 |
- |
18.6 |
| July 1998 |
18.7 |
- |
18.7 |
| August 1998 |
18.7 |
(0.1) |
18.6 |
| September 1998 |
19.1 |
(0.1) |
19.0 |
| October 1998 |
19.3 |
(0.1) |
19.2 |
Note: The Land Fund was established on 1 July 1997.
Figures prior to that date are therefore not available
