Exchange Fund Abridged Balance Sheet and Currency Board Account
The Hong Kong Monetary Authority (HKMA) announced today (22 December) that the total assets of the Exchange Fund amounted to HK$994.9 billion as at 30 November 2000.
The figure is included in the Exchange Fund Abridged Balance Sheet, which is released on a monthly basis together with the Currency Board Account.
At the end of November 2000, the total assets of the Exchange Fund, at HK$994.9 billion, were HK$9.6 billion higher than at the end of October. Foreign currency assets increased by HK$14.5 billion while Hong Kong dollar assets decreased by HK$4.9 billion.
The increase in foreign currency assets reflected mainly income and gains on these assets as well as purchase of foreign currencies with Hong Kong dollars.
The decrease in Hong Kong dollar assets was due mainly to the sale of Hong Kong dollars for foreign currencies and a decrease in the market value of Hong Kong equities held by the Exchange Fund, which were partly offset by an increase in placements by other government funds.
Figures in the Currency Board Account show that the monetary base at the end of November was HK$208.7 billion, an increase of HK$0.6 billion, or 0.3%, from the end of October 2000. The increase was mainly due to an increase in issuance of Exchange Fund Bills and Notes.
The backing assets increased by HK$1.5 billion, or 0.7%, from HK$232.7 billion to HK$234.2 billion. The increase was mainly due to income from investment and revaluation gains of HK$1.6 billion. Reflecting this, the backing ratio increased from 111.8% at the end of October to 112.2% at the end of November.
Attachment
Annex 1 : Abridged Balance Sheet of the Exchange Fund
Annex 2 : Currency Board Account
For further enquiries, please contact:
Caitlin Wong, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480
Hong Kong Monetary Authority
22 December 2000
At present, four press releases relating to the Exchange Fund's data are issued 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 December, the scheduled dates for issuing the press releases are as follows:
| 7 December (Issued) | SDDS International Reserves (Hong Kong's Latest Foreign Currency Reserve Assets Figures) |
| 14 December (Issued) | SDDS Analytical Accounts of the Central Bank (Exchange Fund Balance Sheet Data) |
| 22 December | Exchange Fund Abridged Balance Sheet and Currency Board Account |
| 29 December | SDDS Template on International Reserves and Foreign Currency Liquidity |
Annex 1
Exchange Fund Abridged Balance Sheet
as at 30 November 2000
(Expressed in millions of Hong Kong dollars)
Notes 30 November 2000 31 October 2000
ASSET
Foreign currency assets 1 831,504 816,972
Hong Kong dollar assets 2 163,412 168,350
--------- ---------
Total Assets 994,916 985,322
========= =========
LIABILITIES AND ACCUMULATED
SURPLUS
Certificates of Indebtedness 3 93,225 93,265
Coins in circulation 3 5,872 5,861
Balance of banking system 3 876 936
Exchange Fund Bills and Notes 3 108,091 114,336
Placements by other Hong Kong
Special Administrative Region
government funds 421,494 409,397
Placements by other institutions 47,001 48,862
Other liabilities 4 28,465 24,262
--------- ---------
Total Liabilities 705,024 696,919
Accumulated surplus 289,892 288,403
--------- ---------
Total liabilities and accumulated
surplus 994,916 985,322
========= =========
Notes:
1. These include US dollar assets for backing the Monetary Base, which amounted to HK$234,198 million as at end-November 2000 and HK$232,655 million as at end-October 2000.
2. These include lending collateralised by Exchange Fund paper under the Discount Window, which amounted to HK$31 million as at end-November 2000 (HK$28 million as at end-October 2000).
3. A component of the Monetary Base.
4. These include interest payable on Exchange Fund paper and accounts payable under Currency Board operations.
Annex 2
|
Exchange Fund
Notes 30 November 2000 31 October 2000
(Market Value) (Market Value)
MONETARY BASE
Certificates of Indebtedness 93,225 93,265
Coins in circulation 5,872 5,861
Balance of the banking system 876 936
Exchange Fund Bills and Notes
issued 3,4,5 108,091 114,336
Interest payable on Exchange
Fund Notes 625 630
Net accounts (receivable)/
payable 3,5 (31) (6,947)
--------- ---------
Total 1,3 208,658 208,081(a)
--------- ---------
BACKING ASSETS
Investment in designated US
dollar assets 233,369 230,908
Interest receivable on designated
US dollar assets 1,213 1,747
Net accounts receivable/
(payable) 6 (384) -
--------- ---------
Total 2 234,198 232,655(b)
--------- ---------
BACKING RATIO [ (b)/(a) ] * 100% 7 112.24% 111.81%
--------- ---------
|
Notes :
1. Movements in the Monetary Base during the period were as follows:
HK$ million
-----------
Balance brought forward 208,081
Increase/(Decrease) in Certificates of Indebtedness (40)
Increase/(Decrease) in Coins in circulation 11
Net issue/(Net redemption) of Exchange Fund
Bills and Notes (6,645)
(Increase)/Decrease in Exchange Fund Bills and
Notes issued but not yet settled 6,919
Accrued interest on Exchange Fund Notes 208
Settlement of accrued interest on Exchange
Fund Notes (212)
Amortised discount/(premium) on Exchange Fund
Bills and Notes 350
Revaluation losses/(gains) relating to Exchange
Fund Bills and Notes 49
Increase/(Decrease) in balance of banking system
(other than due to Discount Window Operations) (63)
-----------
Balance carried forward 208,658
===========
2. Movements in backing assets during the period were as follows:
HK$ million
-----------
Balance brought forward 232,655
Increase/(Decrease) on issue/(redemption) of
Certificates of Indebtedness (40)
Increase/(Decrease) on issue/(redemption) of
Coins in circulation 11
Income from investments 606
Revaluation gains/(losses) relating to investments 966
-----------
Balance carried forward 234,198
===========
3. Discount Window Operations:
(i) Discount Window Operations involve Hong Kong dollar overnight advances made to banks by way of crediting their accounts maintained with the HKMA (which is part of the balance of the banking system) on discounting Exchange Fund Bills and Notes and other eligible paper. In accordance with generally accepted accounting practice, the Exchange Fund Bills and Notes discounted with the HKMA are not accounted for as reductions in the liabilities of the HKMA but are regarded as securities held against the advances so made.
(ii) For the purpose of this Account, the advances to banks secured on Exchange Fund Bills and Notes amounting to HK$31 million at 30 November 2000 (HK$28 million at 31 October 2000) are shown as deductions in arriving at the Monetary Base.
4. Interest Payments on Exchange Fund Bills and Notes:
(i) Starting from 1 April 1999, interest payments on Exchange Fund Bills and Notes have been allowed to increase the amount of outstanding Exchange Fund paper.
(ii) During November, the nominal value of Exchange Fund Bills and Notes (EFBN) decreased from HK$114.27 billion to HK$107.98 billion. (If EFBN issued but not yet settled at end-October were excluded, the nominal value of EFBN would have increased by HK$0.73 billion.)
5. In accordance with the accounting policies adopted by the Exchange Fund, Exchange Fund Bills and Notes issued on tender date but not yet settled are included in "Exchange Fund Bills and Notes issued". For the purpose of this Account, the corresponding accounts receivable are shown as deductions in arriving at the Monetary Base. There was no such receivable at 30 November 2000 (HK$6,919 million at 31 October 2000).
6. This represents the net amount of receivables and payables for unsettled transactions in respect of investments and redemption/issuance of Certificates of Indebtedness.
7. It should be noted that the whole of the Exchange Fund assets, not just the backing assets, are available for the purpose of defending the linked exchange rate.
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