The Hong Kong Monetary Authority (HKMA) announced that the
official foreign currency assets of Hong Kong were US$89.6 billion
at the end of December 1998, an increase of US$1 billion from
US$88.6 billion at the end of November 1998 (Table 1).
The increase in foreign currency assets is mainly attributable
to an increase in the investment return on the foreign currency
assets.
Hong Kong is now the world's fourth largest holder of foreign
currency reserves after Japan, Mainland China and Taiwan (Table 2). The total foreign
currency assets of US$89.6 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 forward contracts, the foreign currency
assets of Hong Kong at the end of December 1998 were also US$89.6
billion (End-November: US$88.6 billion).
In November, the Hong Kong Special Administrative Region
Government announced the merger of the assets of the Land Fund into
the Exchange Fund. Henceforth, the announcement of the foreign
currency figure is on a consolidated basis using the assets of the
enlarged Exchange Fund.
Hong Kong Monetary Authority
28 January 1999
TABLE
1
| Exchange Fund -- Foreign Currency Assets of
Hong Kong (US$ 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 * |
81.7 |
2.6 |
84.3 |
| August 1997 |
85.3 |
0.2 |
85.5 |
| September 1997 |
88.1 |
0.7 |
88.8 |
| October 1997 |
91.4 |
0.3 |
91.7 |
| November 1997 |
96.5 |
0.4 |
96.9 |
| December 1997 |
92.8 |
0.4 |
93.2 |
| January 1998 |
98.1 |
- |
98.1 |
| February 1998 |
96.7 |
- |
96.7 |
| March 1998 |
96.8 |
0.1 |
96.9 |
| April 1998 |
96.2 |
(0.1) |
96.1 |
| May 1998 |
96.4 |
- |
96.4 |
| June 1998 |
96.5 |
- |
96.5 |
| July 1998 |
96.5 |
(0.5) |
96.0 |
| August 1998 |
92.1 |
(4.5) |
87.6 |
| September 1998 |
88.4 |
(0.2) |
88.2 |
| October 1998 |
88.7 |
(0.2) |
88.5 |
| November 1998 # |
88.6 |
- |
88.6 |
| December 1998 |
89.6 |
- |
89.6 |
* For July 97 to October 98 inclusive, the figures
reflect the aggregate of Exchange Fund and Land Fund figures.
Figures for June 97 and prior months reflect the Exchange Fund's
figures only. The Land Fund was established on 1 July 1997. Figures
for the Land Fund prior to that date are therefore not
available.
# In November 1998, the assets of the Land Fund were
merged into the Exchange Fund.
TABLE
2
| Foreign Currency Reserves
Ranking |
| - |
- |
US$BN |
As at end of |
| (1) |
Japan |
215.9 |
Dec 1998 |
| (2) |
China |
145.0 |
Dec 1998 |
| (3) |
Taiwan |
90.3 |
Dec 1998 |
| (4) |
Hong Kong |
89.6 |
Dec 1998 |
| (5) |
US |
81.0 |
Oct 1998 |
| (6) |
Germany |
80.3 |
Dec 1998 |
| (7) |
Singapore |
75.0 |
Dec 1998 |
| (8) |
Spain |
69.5 |
Nov 1998 |
| (9) |
Korea |
52.0 |
Dec 1998 |
| (10) |
France |
49.8 |
Nov 1998 |
Source: HKMA, IMF, Reuters, Singapore Department of Statistics,
and Bank of Korea
