Exchange Fund assets fall to HK$4.17 trillionLocal | 31 Mar 2020 5:24 pm
Exchange Fund assets dropped to HK$4.17 trillion as at end February 29, down by HK$16.2 billion from the end of January, the Hong Kong Monetary Authority (HKMA) announced today.
Hong Kong dollar assets declined by HK$32.9 billion while foreign currency assets increased by HK$16.7 billion.
The HKMA said the decline in Hong Kong dollar assets was mainly due to a drop in bank borrowings and withdrawals of placements by Fiscal Reserves, Hong Kong Special Administrative Region Government funds and statutory bodies. The rise in foreign currency assets was mainly due to an increase in unsettled purchases of securities.
The Currency Board Account shows that the Monetary Base at the end of February 2020 was HK$1.68 trillion, down by HK$2.1 billion, or 0.1 percent, from the end of January. The decline was mainly due to a decrease in the outstanding amount of Certificates of Indebtedness, the HKMA explained.
The amount of Backing Assets increased by HK$12.7 billion, or 0.7 per cent, to HK$1,886.4 billion. The increase was mainly attributable to the rise in the market value of investments which was partly offset by the redemption of Certificates of Indebtedness. The backing ratio increased from 110.96 per cent at the end of January 2020 to 111.85 per cent at the end of February 2020.