Hong Kong's Latest Foreign Currency Assets Figures Released

The Hong Kong Monetary Authority (HKMA) announced today (7 September) that the official foreign currency assets of Hong Kong amounted to US$89.2 billion at the end of August 1999 (end-July: US$89.1 billion) (Table 1).

Including unsettled forward contracts, the foreign currency assets of Hong Kong at the end of August 1999 stood at US$89.3 billion (end-July: US$89.1 billion).

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$89.2 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 September 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 
Aug 99          89.2          0.1           89.3

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             261.3           August 1999

 (2)  China             151.3           July 1999

 (3)  Taiwan             98.6           July 1999

 (4)  Germany            92.9           July 1999 

 (5)  Hong Kong          89.2           August 1999

 (6)  Singapore          75.6           July 1999

 (7)  US                 72.3           July 1999

 (8)  France             70.5           July 1999

 (9)  Korea              64.8           August 1999

 (10) Italy              43.6           July 1999

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