The Hong Kong Monetary Authority (HKMA) announced today (Monday)
that the official foreign currency assets of Hong Kong amounted to
US$88.9 billion at the end of May 1999 (end-April: US$89.5 billion)
(Table 1).
According to an HKMA spokesperson, "the US$0.6 billion drop in
settled foreign currency assets during the month reflects primarily
the valuation effect of foreign currency investments held by the
Exchange Fund".
Including unsettled forward contracts, the foreign currency
assets of Hong Kong at the end of May 1999 stood at US$88.9 billion
(end-April: US$89.5 billion).
In terms of foreign currency reserves ranking, Hong Kong is now
the world's fifth largest holder of foreign currency reserves after
Japan, Mainland China, Taiwan and Germany (Table
2).
The total foreign currency assets of US$88.9 billion represent
over seven times the currency in circulation or about 37% of Hong
Kong dollar M3, one of the highest ratios in the world.
Hong Kong Monetary Authority
7 June 1999
Table 1
Foreign
Currency Assets of Hong Kong
(US$ billion)
Excluding Including
Unsettled Unsettled Unsettled
FX Contracts FX Contracts FX Contracts
Dec 95 55.4 1.8 57.2
Dec 96 63.8 5.7 69.6
Dec 97 92.8 0.4 93.2
Jan 98 98.1 - 98.1
Feb 98 96.7 - 96.7
Mar 98 96.8 0.1 96.9
Apr 98 96.2 (0.1) 96.1
May 98 96.4 - 96.4
Jun 98 96.5 - 96.5
Jul 98 96.5 (0.5) 96.0
Aug 98 92.1 (4.5) 87.6
Sep 98 88.4 (0.2) 88.2
Oct 98 88.7 (0.2) 88.5
Nov 98 88.6 - 88.6
Dec 98 89.6 - 89.6
Jan 99 90.1 - 90.1
Feb 99 89.8 - 89.8
Mar 99 89.5 - 89.5
Apr 99 89.5 - 89.5
May 99 88.9 - 88.9
Figures as at the end of 1995 and 1996 do not include Land Fund
figures. The Land Fund was established on 1 July 1997. For July 97
to October 98 inclusive, the foreign currency assets of Hong Kong
were compiled as the aggregate of Exchange Fund and Land Fund
figures. In November 1998, the assets of the Land Fund were merged
into the Exchange Fund.
Table 2
Foreign Currency Reserves Ranking
US$ billion As at end of
(1) Japan 223.7 May 1999
(2) China 146.7 Apr 1999
(3) Taiwan 95.7 May 1999
(4) Germany* 92.7 Mar 1999
(5) Hong Kong 88.9 May 1999
(6) Singapore 74.7 Apr 1999
(7) US 73.7 Apr 1999
(8) France 68.6 Apr 1999
(9) Korea 61.4 May 1999
(10) Spain 45.7 Apr 1999
Sources: HKMA, Reuters, Deutsche Bundesbank, Singapore
Department of Statistics, U.S. Department of Treasury.
* In the above updated ranking table, Germany has moved up from
the eighth to fourth position as a result of a revision in the
basis used by its central bank to value gold holdings.
