Hong Kong's Latest Foreign Currency Assets Figures Released

The Hong Kong Monetary Authority (HKMA) announced today (6 August) that the official foreign currency assets of Hong Kong amounted to US$89.1 billion at the end of July 1999 (end-June: US$88.6 billion) (Table 1).

Including unsettled forward contracts, the foreign currency assets of Hong Kong at the end of July 1999 also stood at US$89.1 billion (end-June : US$88.6 billion).

According to an HKMA spokesperson, "the US$0.5 billion increase in settled foreign currency assets during the month reflects mainly the valuation effect of foreign currency investments held by the Exchange Fund".

In terms of foreign currency reserves ranking, Hong Kong is 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$89.1 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

6 August 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
Jun 99      88.6            -           88.6
Jul 99      89.1            -           89.1

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             260.7           July 1999

(2)  China             147.1           June 1999

(3)  Taiwan            98.6            July 1999

(4)  Germany           90.0            June 1999

(5)  Hong Kong         89.1            July 1999

(6)  Singapore         73.9            June 1999

(7)  US                72.1            May 1999

(8)  France            67.8            June 1999

(9)  Korea             64.9            July 1999

(10) Brazil            42.2            July 1999

Sources: HKMA, Reuters, Deutsche Bundesbank, Singapore Department of Statistics, U.S. Department of Treasury.