Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced today (Friday) that the total assets of the Exchange Fund amounted to HK$4,137.6 billion as at 31 July 2019, HK$0.7 billion higher than that at the end of June 2019. Foreign currency assets increased by HK$19.4 billion while Hong Kong dollar assets decreased by HK$18.7 billion.

The rise in foreign currency assets was mainly due to an increase in unsettled purchases of securities and income from foreign currency investments. The decline in Hong Kong dollar assets was mainly due to withdrawals of placements by Fiscal Reserves and the fall in market value of Hong Kong equities.

The Currency Board Account shows that the Monetary Base at the end of July 2019 was HK$1,633.1 billion, decreased by HK$1.4 billion, or 0.1%, from the end of June 2019. The decline was mainly due to a decrease in the outstanding amount of Certificates of Indebtedness.

The amount of Backing Assets increased by HK$2.2 billion, or 0.1%, to HK$1,818.6 billion. The increase was mainly attributable to income from investments, which was partly offset by the redemption of Certificates of Indebtedness. The backing ratio increased from 111.13% at the end of June 2019 to 111.36% at the end of July 2019.

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

Hong Kong Monetary Authority
30 August 2019

*****************************************************************

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 August 2019, the scheduled dates for issuing the press releases are as follows: