foreign currency swap deposits

Deposits which involve customers buying foreign currencies in the spot market and placing them as deposits with authorized institutions, while at the same time entering into a contract to sell these foreign currencies (principal plus interest) forward in line with the maturity of such deposits. For most analytical purposes, these deposits should be regarded as Hong Kong dollar time deposits. money supply figures for the Hong Kong dollar are adjusted to include foreign currency swap deposits, while those for foreign currency are adjusted to exclude these deposits.