Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) published today the Exchange Fund Abridged Balance Sheet and Currency Board Account as at 31 March 1999. The HKMA started to publish these accounts from February 1999 on a monthly basis to increase transparency.

In releasing these monthly figures on the Exchange Fund, a spokesman from the HKMA pointed out that these figures should be interpreted with care. He said that "monthly figures are likely to fluctuate due to short-term market movements and seasonal factors".

Exchange Fund Abridged Balance Sheet

At end-March 1999, total assets of the Exchange Fund amounted to HK$927.1 billion, which was HK$5.8 billion higher than at end-February 1999. The increase in total assets reflected an increase of HK$10.7 billion in Hong Kong dollar assets, which was partly offset by a decrease of HK$5.0 billion in foreign currency assets. The increase in Hong Kong dollar assets was mainly due to appreciation in market value of the Hong Kong equities held by the Exchange Fund. The decrease in foreign currency assets can mainly be attributed to reversal in note issuing activities in March after the Chinese New Year.

Currency Board Account

The monetary base at end-March 1999 was HK$199.4 billion, a decrease of HK$3.6 billion or 1.8% from end-February 1999, mainly reflecting redemption of Certificates of Indebtedness after the Chinese New Year.

The decrease in backing assets was smaller, by $2.6 billion or 1.2%, from HK$221.0 billion to HK$218.4 billion. This mainly reflected investment income and revaluation gains. Consequently, the backing ratio increased from 108.83% at end-February to 109.52% at end-March.

Attachment

Annex 1 : Abridged Balance Sheet of the Exchange Fund

Annex 2 : Currency Board Account

Hong Kong Monetary Authority

28 April 1999