Exchange Fund assets drop to HK$4.19tBusiness | 28 Feb 2020 6:44 pm
The Hong Kong Monetary Authority announced that the total assets of the Exchange Fund amounted to HK$4.194 trillion as at January 31, HK$65.1 billion lower than that at the end of December.
Hong Kong dollar assets decreased by HK$46.9 billion and foreign currency assets decreased by HK$18.2 billion.
The Currency Board Account shows that the Monetary Base at the end of January increased 1.6 percent month-on-month to HK$1.688 trillion. 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 1.4 percent to HK$1.873 trillion. The increase was mainly attributable to the issuance of Certificates of Indebtedness. The backing ratio decreased from 111.21 percent at the end of December to 110.96 percent at the end of last month.