Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced today (27 September) that the total assets of the Exchange Fund amounted to HK$953.1 billion as at 31 August 1999.

The figure is included in the Exchange Fund Abridged Balance Sheet, which is released on a monthly basis together with the Currency Board Account. The footnotes on the Exchange Fund Abridged Balance Sheet refer to the related items on the Currency Board Account.

At end-August 1999, the total assets of the Exchange Fund, at HK$953.1 billion, were HK$22.6 billion higher than at end-July 1999. Both foreign currency assets and Hong Kong dollar assets increased, by HK$6.9 billion and HK$15.7 billion respectively.

The increase in Hong Kong dollar assets was due partly to the change in the market value of Hong Kong equities held by the Exchange Fund.

Figures in the Currency Board Account show that the Monetary Base at end-August was HK$196.6 billion, an increase of HK$0.5 billion, or 0.3%, from end-July 1999. The increase was primarily due to increases in the Aggregate Balance and the market value of Exchange Fund Bills and Notes. Such increases were, however, partly offset by a decrease in Certificates of Indebtedness.

The backing assets increased by HK$1.0 billion, or 0.5%, from HK$216.5 billion to HK$217.5 billion. The increase in backing assets over the Monetary Base was largely due to net income and revaluation gains totalling HK$0.9 billion. Reflecting this, the backing ratio increased from 110.42% at end-July to 110.65% at end-August.

Attachment

Annex 1 : Abridged Balance Sheet of the Exchange Fund

Annex 2 : Currency Board Account

Hong Kong Monetary Authority

27 September 1999