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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) announced today (February 29) that the total assets of the Exchange Fund amounted to HK$2,646.3 billion as at 31 January 2012.
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 January 2012 the total assets of the Exchange Fund, at HK$2,646.3 billion, were HK$153.6 billion higher than at the end of December 2011. Foreign currency assets increased by HK$78.6 billion and Hong Kong dollar assets increased by HK$75.0 billion.
The rise in foreign currency assets was mainly due to purchases of foreign currencies with Hong Kong dollars, valuation gains on foreign currency investments, increases in unsettled purchases of securities and Certificates of Indebtedness. The rise in Hong Kong dollar assets was mainly due to placements received from fiscal reserves, an increase in Exchange Fund Bills and Notes issued but not yet settled and valuation gains on Hong Kong equities. These increases were partly offset by sales of Hong Kong dollars for foreign currencies.
The Currency Board Account shows that the Monetary Base at the end of January 2012 was HK$1,091.2 billion, an increase of HK$15.2 billion, or 1.4%, from the end of December 2011. The rise was mainly due to an increase in Certificates of Indebtedness which reflected the seasonal demand for banknotes around Lunar New Year.
The Backing Assets increased by HK$14.4 billion, or 1.2%, to HK$1,186.4 billion. The increase was mainly attributable to the issuance of Certificates of Indebtedness and interest from investments which were partly offset by exchange losses triggered by a stronger Hong Kong dollar. The backing ratio decreased from 108.92% at the end of December 2011 to 108.72% at the end of January 2012.
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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 2012, the scheduled dates for issuing the press releases are as follows:
February 7 (Issued)
SDDS International Reserves
(Hong Kong's Latest Foreign Currency Reserve Assets Figures)
February 14 (Issued)
SDDS Analytical Accounts of the Central Bank
(Analytical Accounts of the Exchange Fund)
February 29
Exchange Fund Abridged Balance Sheet and Currency Board Account
February 29
SDDS Template on International Reserves and Foreign Currency Liquidity
Ends/Wednesday, February 29, 2012
Issued at HKT 16:48
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