The Hong Kong Monetary Authority (HKMA) announced today (7
January 2000) that the official foreign currency assets of Hong
Kong amounted to US$96.3 billion at the end of December 1999
(end-November: US$92.1 billion) (Table
1).
Including unsettled forward contracts, the foreign currency
assets of Hong Kong at the end of December 1999 also stood at
US$96.3 billion (end-November: US$92.6 billion).
According to an HKMA spokesperson, the US$4.2 billion increase
in settled foreign currency assets in the month of December was
mainly due to the issue of additional currency notes, which are
backed by US dollars deposited by the note issuing banks with the
Exchange Fund.
In terms of foreign currency reserves ranking, Hong Kong is now
the world's fourth largest holder of foreign currency reserves
after Japan, Mainland China and Taiwan (Table
2).
The total foreign currency assets of US$96.3 billion represent
over six times the currency in circulation or about 39% of Hong
Kong dollar M3, one of the highest ratios in the world.
Hong Kong Monetary Authority
7 January 2000
Table 1
Foreign Currency Assets of Hong
Kong
(US$ 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
Sep 99 90.4 - 90.4
Oct 99 90.4 - 90.4
Nov 99 92.1 0.5 92.6
Dec 99 96.3 - 96.3
Figures for the end of 1995 and 1996 do not include Land Fund
figures. The Land Fund was established on 1 July 1997. For July
1997 to October 1998 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 288.1 Dec 1999
(2) China 154.7 Dec 1999
(3) Taiwan 106.2 Dec 1999
(4) Hong Kong 96.3 Dec 1999
(5) Germany 90.4 Nov 1999
(6) Singapore 74.5 Nov 1999
(7) Korea 74.1 Dec 1999
(8) US 72.4 Nov 1999
(9) France 69.3 Nov 1999
(10) Italy 43.7 Nov 1999
Sources: HKMA, Reuters, Deutsche Bundesbank, Monetary Authority
of Singapore, U.S. Department of Treasury, Bank of Italy.
