Exchange Fund Abridged Balance Sheet and Currency Board Account
The Hong Kong Monetary Authority (HKMA) announced today (22 January) that the total assets of the Exchange Fund amounted to HK$1,020.8 billion as at 31 December 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. The figures in the Exchange Fund Abridged Balance Sheet and Currency Board Account are unaudited. The audit of the Exchange Fund's annual accounts by the Director of Audit is in progress.
At the end of December 2000, the total assets of the Exchange Fund, at HK$1,020.8 billion, were HK$25.9 billion higher than at the end of November. Both foreign currency assets and Hong Kong Dollar assets increased, by HK$22.7 billion and HK$3.2 billion respectively.
The increase in foreign currency assets was mainly due to evaluation gains on foreign currency investments and increase in currency notes outstanding.
The increase in Hong Kong dollar assets was mainly due to an increase in the market value of Hong Kong equities held by the Exchange Fund, which was partly offset by a decrease in placements by other government funds and other institutions.
Figures in the Currency Board Account show that the monetary base at the end of December was HK$215.4 billion, an increase of HK$6.7 billion, or 3.2%, from the end of November 2000. The increase was mainly due to an increase in Certificates of Indebtedness, mainly reflecting the seasonal demand for cash around Christmas and New Year.
The backing assets increased by HK$7.4 billion, or 3.2%, from HK$234.2 billion to HK$241.6 billion. The rise was mainly driven by the corresponding increase in Certificates of Indebtedness in the Monetary Base, together with net income and revaluation gains. As a result, the backing ratio remained virtually unchanged at 112.2%.
Attachment
Annex 1 : Abridged Balance Sheet of the Exchange Fund
Annex 2 : Currency Board Account
For further enquiries, please contact:
Jasmin Fung, Manager (Press), at 2878 8246 or
Caitlin Wong, Manager (Press), at 2878 1687
Hong Kong Monetary Authority
22 January 2001
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 January, the scheduled dates for issuing the press releases are as follows:
| 8 January (Issued) | SDDS International Reserves (Hong Kong's Latest Foreign Currency Reserve Assets Figures) |
| 15 January (Issued) | SDDS Analytical Accounts of the Central Bank (Exchange Fund Balance Sheet Data) |
| 22 January | Exchange Fund Abridged Balance Sheet and Currency Board Account |
| 31 January | SDDS Template on International Reserves and Foreign Currency Liquidity |
Annex 1
Exchange Fund Abridged Balance Sheet
as at 31 December 2000
(Expressed in millions of Hong Kong dollars)
Notes 31December 2000 30 November 2000
ASSETS
Foreign currency assets 1 854,215 831,504
Hong Kong dollar assets 2 166,582 163,412
--------- ---------
Total Assets 1,020,797 994,916
========= =========
LIABILITIES AND ACCUMULATED SURPLUS
Certificates of Indebtedness 3 99,265 93,225
Coins in circulation 3 5,918 5,872
Balance of banking system 3 669 876
Exchange Fund Bills and Notes 3 109,288 108,091
Placements by other Hong Kong
Special Administrative Region
government funds 417,162 421,494
Placements by other institutions 44,865 47,001
Other liabilities 4 36,590 28,465
--------- ---------
Total Liabilities 713,757 705,024
Accumulated surplus 307,040 289,892
--------- ---------
Total liabilities and accumulated
surplus 1,020,797 994,916
========= =========
Notes:
1. These include US dollar assets for backing the Monetary Base, which amounted to HK$241,622 million as at end-December 2000 and HK$234,198 million as at end-November 2000.
2. These include lending collateralised by Exchange Fund paper under the Discount Window, which amounted to HK$348 million as at end-December 2000 (HK$31 million as at end-November 2000).
3. A component of the Monetary Base.
4. These include interest payable on Exchange Fund paper and accounts payable under Currency Board operations.
Annex 2
|
Exchange Fund Currency Board Account as at 31 December 2000 (Expressed in millions of Hong Kong dollars)
Notes 31 December 2000 30 November 2000
(Market Value) (Market Value)
MONETARY BASE
Certificates of
Indebtedness 99,265 93,225
Coins in circulation 5,918 5,872
Balance of the banking
system 669 876
Exchange Fund Bills and
Notes issued 3,4 109,288 108,091
Interest payable on
Exchange Fund Notes 612 625
Net accounts (receivable)/
payable 3 (348) (31)
--------- ---------
Total 1,3 215,404 208,658(a)
--------- ---------
BACKING ASSETS
Investment in designated
US dollar assets 240,056 233,369
Interest receivable on
designated US dollar
assets 1,593 1,213
Net accounts receivable/
(payable) 5 (27) (384)
--------- ---------
Total 2 241,622 234,198(b)
--------- ---------
BACKING RATIO [(b)/(a)]*100% 6 112.17% 112.24%
--------- ---------
|
Notes :
1. Movements in the Monetary Base during the period were as follows:
HK$ million
-----------
Balance brought forward 208,658
Increase/(Decrease) in Certificates of Indebtedness 6,040
Increase/(Decrease) in Coins in circulation 46
Net issue/(Net redemption) of Exchange Fund Bills and Notes 286
Accrued interest on Exchange Fund Notes 216
Settlement of accrued interest on Exchange Fund Notes (229)
Amortised discount/(premium) on Exchange Fund Bills and Notes 358
Revaluation losses/(gains) relating to Exchange Fund
Bills and Notes 553
Increase/(Decrease) in balance of banking system
(other than due to Discount Window Operations) (524)
---------
Balance carried forward 215,404
=========
2. Movements in backing assets during the period were as follows:
HK$ million
-----------
Balance brought forward 234,198
Increase/(Decrease) on issue/(redemption) of Certificates
of Indebtedness 6,040
Increase/(Decrease) on issue/(redemption) of Coins in
circulation 46
Increase/(Decrease) in balance of banking system (other
than due to Discount Window Operations and interest
payment/issuance of Exchange Fund paper) (468)
Income from investments 649
Revaluation gains/(losses) relating to investments 1,157
---------
Balance carried forward 241,622
=========
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$348 million at 31 December 2000 (HK$31 million at 30 November 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 December, the nominal value of Exchange Fund Bills and Notes increased from HK$107.98 billion to HK$108.60 billion.
5. This represents the net amount of receivables and payables for unsettled transactions in respect of investments and redemption/issuance of Certificates of Indebtedness.
6. 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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