Exchange Fund Abridged Balance Sheet and Currency Board Account

Press Releases

31 Dec 2007

Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced today (Monday) that the total assets of the Exchange Fund amounted to HK$1,410.7 billion on 30 November 2007.

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

At the end of November 2007 the total assets of the Exchange Fund, at HK$1,410.7 billion, were HK$24.5 billion higher than at the end of October 2007. Foreign currency assets increased by HK$39.9 billion while Hong Kong dollar assets decreased by HK$15.4 billion.

The rise in foreign currency assets was due mainly to valuation gains on foreign currency investments, interest and dividend income from foreign currency assets, purchases of foreign currencies with Hong Kong dollars and an increase in Certificates of Indebtedness. These increases were partly offset by a decrease in securities purchased but settled in the following month.

The decline in Hong Kong dollar assets was due mainly to the sale of Hong Kong dollars for foreign currencies and valuation losses of Hong Kong equities held by the Exchange Fund, which were partly offset by placements received from fiscal reserves and an increase in the balance of the banking system.

The Currency Board Account shows that the Monetary Base at the end of November 2007 was HK$315.0 billion, an increase of HK$11.4 billion, or 3.8%, from the end of October 2007. The rise was due mainly to increases in the Aggregate Balance, Certificates of Indebtedness and the market value of Exchange Fund Bills and Notes outstanding.

The Backing Assets increased by HK$16.4 billion, or 4.9%, to HK$349.6 billion. The increase was attributable mainly to an increase in the Aggregate Balance and issuance of Certificates of Indebtedness in the Monetary Base together with revaluation gains and interest from investments. Reflecting this, the backing ratio rose from 109.77% at the end of October 2007 to 110.98% at the end of November 2007.

Annex 1 : Abridged Balance Sheet of the Exchange Fund
Annex 2 : Currency Board Account

For further enquiries, please contact:
Thomas Chan, Senior Manager (Press), at 2878 1480 or
Hing-fung Wong, Officer (Press), at 2878 1802

Hong Kong Monetary Authority
31 December 2007


At present, four press releases relating to the Exchange Fund's data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund's Special Data Dissemination Standard (SDDS). The fourth press release, on the Exchange Fund's Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA's policy of maintaining a high level of transparency. For the month of December 2007, the scheduled dates for issuing the press releases are as follows:

7 December
SDDS International Reserves (Hong Kong's Latest Foreign Currency Reserve Assets Figures)
14 December
SDDS Analytical Accounts of the Central Bank (Analytical Accounts of the Exchange Fund)
31 December Exchange Fund Abridged Balance Sheet and Currency Board Account
31 December SDDS Template on International Reserves and Foreign Currency Liquidity
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Last revision date : 31 December 2007