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$4,534.9 billion as at 31 January 2021, HK$34.1 billion higher than that at the end of December 2020. Foreign currency assets increased by HK$22.2 billion and Hong Kong dollar assets increased by HK$11.9 billion.

The rise in foreign currency assets was mainly due to the issuance of Certificates of Indebtedness and an increase in unsettled purchase of securities. The rise in Hong Kong dollar assets was mainly due to the mark-to-market revaluation on Hong Kong equities.

The Currency Board Account shows that the Monetary Base at the end of January 2021 was HK$2,115.9 billion, increased by HK$17.9 billion, or 0.9%, from the end of December 2020. The rise was mainly due to an increase in the outstanding amount of Certificates of Indebtedness, which reflected the seasonal demand for banknotes around Lunar New Year.

The amount of Backing Assets increased by HK$18.3 billion, or 0.8%, to HK$2,324.6 billion. The increase was mainly attributable to the issuance of Certificates of Indebtedness. The backing ratio decreased from 109.93% at the end of December 2020 to 109.87% at the end of January 2021.

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

Hong Kong Monetary Authority
26 February 2021

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

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 February 2021, the scheduled dates for issuing the press releases are as follows: