Exchange Fund Abridged Balance Sheet and Currency Board Account

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) announced today (July 31) that the total assets of the Exchange Fund amounted to HK$2,554.4 billion as at June 30, 2012.

     The figure is included in the Exchange Fund Abridged Balance Sheet, which is released monthly together with the Currency Board Account.  

     At the end of June 2012 the total assets of the Exchange Fund, at HK$2,554.4 billion, were HK$49.5 billion higher than at the end of May 2012.  Foreign currency assets increased by HK$34.3 billion and Hong Kong dollar assets increased by HK$15.2 billion.

     The rise in foreign currency assets was mainly due to increases in unsettled purchases of securities and Certificates of Indebtedness, valuation gains on foreign currency investments and purchases of foreign currencies with Hong Kong dollars.  

     The rise in Hong Kong dollar assets was mainly due to placements received from HKSAR government funds and statutory bodies and valuation gains on Hong Kong equities.  These increases were partly offset by sales of Hong Kong dollars for foreign currencies.

     The Currency Board Account shows that the Monetary Base at the end of June 2012 was HK$1,086.8 billion, an increase of HK$5.2 billion, or 0.5%, from the end of May 2012.  The rise was mainly due to an increase in Certificates of Indebtedness.

     The Backing Assets increased by HK$3.8 billion, or 0.3%, to HK$1,184.1 billion.  The increase was mainly attributable to the issuance of Certificates of Indebtedness and interest from investments which were partly offset by revaluation losses.  The backing ratio decreased from 109.12% at the end of May 2012 to 108.95 % at the end of June 2012.

     At present, four press releases relating to the Exchange Fund's data are issued by the HKMA 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 July 2012, the scheduled dates for issuing the press releases are as follows:

July 6 (Issued)
SDDS International Reserves
(Hong Kong's Latest Foreign Currency Reserve Assets Figures)

July 13 (Issued)
SDDS Analytical Accounts of the Central Bank
(Analytical Accounts of the Exchange Fund)

July 31
Exchange Fund Abridged Balance Sheet and Currency Board Account

July 31
SDDS Template on International Reserves and Foreign Currency Liquidity

Ends/Tuesday, July 31, 2012
Issued at HKT 16:31