Hong Kong Exchange Fund's total assets amounted to 1.417
trillion HK dollars (181.90 billion U.S. dollars) on Dec. 31, 2007,
up 6.3 billion HK dollars (808.73 million U.S. dollars) over
November's figure, Hong Kong Monetary Authority said on
Thursday.
Foreign currency assets rose 17.3 billion HK dollars (2.22
billion U.S. dollars) and Hong Kong dollar assets fell by 11
billion HK dollars (1.41 billion U.S. dollars).
The rise in foreign currency assets was mainly due to interest
and dividend income from foreign currency assets, purchases of
foreign currencies with Hong Kong dollars, and an increase in
Certificates of Indebtedness. These increases were partly offset by
valuation losses on foreign currency investments and a decrease in
repurchase agreements outstanding.
The drop in Hong Kong dollar assets was mainly due to the sale
of Hong Kong dollars for foreign currencies and valuation losses on
Hong Kong equities held by the Exchange Fund, which were partly
offset by placements received from fiscal reserves and an increase
in Exchange Fund Bills and Notes issued but not yet settled, the
authority said.
The Currency Board Account shows the Monetary Base at the end of
December 2007 was 320.2 billion HK dollars (41.10 billion U.S.
dollars), up 5.3 billion HK dollars (680.36 million U.S. dollars)
or 1.7 percent. The rise was due mainly to an increase in
Certificates of Indebtedness reflecting seasonal demand for
banknotes around the Christmas-New Year period. This was partly
offset by a decrease in the market value of Exchange Fund Bills and
Notes outstanding.
(Xinhua News Agency February 1, 2008)
