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The Hong Kong Monetary Authority (HKMA) announced that the official foreign currency assets of Hong Kong were US$88.6 billion at the end of November 1998, virtually unchanged from end-October's US$88.7 billion. Including unsettled forward contracts, the foreign currency assets of Hong Kong were also US$88.6 billion (End-October: US$88.5 billion) (Table 1).
In terms of foreign currency reserves ranking, Hong Kong remains the third largest in the world, after Japan and Mainland China (Table 2). The total foreign currency assets of US$88.6 billion represent over seven times the currency in circulation or about 40% of Hong Kong dollar M3, one of the highest ratios in the world.
In November, the Hong Kong Special Administrative Region Government announced the merger of the assets of the Land Fund into the Exchange Fund at a consideration based on the market value as at 31 October 1998. Henceforth, the announcement of the foreign currency figure will be on a consolidated basis using the assets of the enlarged Exchange Fund.
Table 1
Exchange Fund
Foreign Currency Assets of Hong Kong
(US$ billion)
Excluding Including
Unsettled Unsettled Unsettled
FX Contracts FX Contracts FX Contracts
Mar 95 52.4 (0.2) 52.2
Jun 95 53.6 - 53.6
Sep 95 51.8 2.8 54.6
Dec 95 55.4 1.8 57.2
Mar 96 58.1 1.7 59.8
Jun 96 57.3 2.7 60.0
Sep 96 55.4 6.7 62.1
Dec 96 63.8 5.7 69.6
Jan 97 65.9 5.2 71.1
Feb 97 63.8 4.3 68.1
Mar 97 63.4 4.3 67.7
Apr 97 63.6 4.0 67.6
May 97 66.6 1.8 68.4
Jun 97 67.6 2.1 69.7
Jul 97 * 81.7 2.6 84.3
Aug 97 85.3 0.2 85.5
Sep 97 88.1 0.7 88.8
Oct 97 91.4 0.3 91.7
Nov 97 96.5 0.4 96.9
Dec 97 92.8 0.4 93.2
Jan 98 98.1 - 98.1
Feb 98 96.7 - 96.7
Mar 98 96.8 0.1 96.9
Apr 98 96.2 (0.1) 96.1
May 98 96.4 - 96.4
Jun 98 96.5 - 96.5
Jul 98 96.5 (0.5) 96.0
Aug 98 92.1 (4.5) 87.6
Sep 98 88.4 (0.2) 88.2
Oct 98 88.7 (0.2) 88.5
Nov 98 # 88.6 - 88.6
* For July 97 to October 98 inclusive, the figures reflect the aggregate of Exchange Fund and Land Fund figures. Figures for June 97 and prior months reflect the Exchange Fund's figures only. The Land Fund was established on 1 July 1997. Figures for the Land Fund prior to that date are therefore not available.
# In November 1998, the assets of the Land Fund were merged into the Exchange Fund.
Table 2
Foreign Currency Reserves Ranking
US$ billion As at end of
(1) Japan 214.7 Nov 1998
(2) China 143.7 Oct 1998
(3) Hong Kong 88.6 Nov 1998
(4) Taiwan 88.1 Nov 1998
(5) Germany 85.6 Oct 1998
(6) US 81.0 Oct 1998
(7) Singapore 76.1 Oct 1998
(8) Spain 71.3 Oct 1998
(9) Korea 48.8 Oct 1998
(10) France 46.8 Oct 1998
Source: HKMA, IMF, Reuters
END/Thursday, December 17, 1998
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