Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced today (28 February) that the total assets of the Exchange Fund amounted to HK$4,662.0 billion as at 31 January 2022, HK$84.2 billion higher than that at the end of December 2021. Hong Kong dollar assets increased by HK$95.2 billion while foreign currency assets decreased by HK$11.0 billion.

The rise in Hong Kong dollar assets was mainly due to an increase in Exchange Fund Bills and Notes issued but not yet settled and additional placements from Fiscal Reserves. The decline in foreign currency assets was mainly due to the mark-to-market revaluation on investments and a decrease in the month-end balances of unsettled purchase of securities, which were partly offset by the issuance of Certificates of Indebtedness.

The Currency Board Account shows that the Monetary Base at the end of January 2022 was HK$2,160.7 billion, increased by HK$29.2 billion, or 1.4%, from the end of December 2021. 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$23.6 billion, or 1.0%, to HK$2,373.4 billion. The increase was mainly attributable to the issuance of Certificates of Indebtedness, which was partly offset by the mark-to-market revaluation on investments. The backing ratio decreased from 110.24% at the end of December 2021 to 109.84% at the end of January 2022.

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

Hong Kong Monetary Authority
28 February 2022

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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 2022, the scheduled dates for issuing the press releases are as follows: