Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced today (29 October) that the total assets of the Exchange Fund amounted to HK$945.4 billion as at 30 September 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-September 1999, the total assets of the Exchange Fund, at HK$945.4 billion, were HK$7.6 billion lower than at end-August 1999. Foreign currency assets increased by HK$12.5 billion while Hong Kong dollar assets decreased by HK$20.1 billion.

The decrease in Hong Kong dollar assets was due largely 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-September was HK$200.8 billion, an increase of HK$4.2 billion, or 2.14%, from end-August 1999. The increase was primarily due to an increase in Certificates of Indebtedness.

The backing assets increased by HK$4.7 billion, or 2.16%, from HK$217.5 billion to HK$222.2 billion. The slightly larger increase in backing assets over that of the Monetary Base was mainly attributable to income from investment and revaluation gains. The backing ratio, at 110.67%, was marginally higher than the ratio of 110.65% at end-August.

Attachment

Annex 1 : Abridged Balance Sheet of the Exchange Fund

Annex 2 : Currency Board Account

Hong Kong Monetary Authority

29 October 1999