Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced today (28 April 2000) that the total assets of the Exchange Fund amounted to HK$985 billion as at 31 March 2000.

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

At the end of March 2000, the total assets of the Exchange Fund, at HK$985.04 billion, were marginally higher than the amount of HK$984.98 billion reported for the end of February. Foreign currency assets increased by HK$12.70 billion while Hong Kong dollar assets decreased by HK$12.64 billion.

The increase in foreign currency assets was partly due to revaluation effects on foreign currency investments. The decrease in Hong Kong dollar assets was due largely to the a decrease in the placements by other government funds, which was partly offset by an increase 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 the end of March was HK$208.2 billion, a decrease of HK$2.9 billion, or 1.38%, from the end of February 2000. The decrease was mainly attributable to a decline in Certificates of Indebtedness of HK$3.7 billion, which was partly offset by increases in issuance and market value of Exchange Fund Bills and Notes, of HK$0.6 billion and HK$0.2 billion respectively.

The backing assets decreased by HK$2.2 billion, or 0.93%, from HK$235.3 billion to HK$233.1 billion. The decline was mainly driven by the corresponding decrease in Certificates of Indebtedness, which was partly offset by net income and revaluation gains of HK$1.5 billion. Reflecting this, the backing ratio increased from 111.48% at the end of February to 111.98% at the end of March.

Attachment

Annex 1 : Abridged Balance Sheet of the Exchange Fund

Annex 2 : Currency Board Account

Hong Kong Monetary Authority

28 April 2000