Hong Kong’s Exchange Fund increased foreign assets by HK$57 billion in October as the monetary base rose and private-sector claims fell, according to monthly accounts released by the Hong Kong Monetary Authority (HKMA).
The accounts offer a monthly snapshot of the fund’s assets, liabilities and monetary base. Foreign assets stood at HK$3,633,018 million on Oct. 31, compared with HK$3,576,000 million on Sept. 30. The difference is HK$57,018 million; the HKMA rounded the increase to HK$57.0 billion.
Claims on Hong Kong’s private sector declined to HK$427,771 million from HK$472,954 million. The monetary base increased to HK$2,094,706 million from HK$2,090,180 million, while foreign liabilities rose to HK$140,341 million from HK$135,270 million. Claims on the Hong Kong government were zero at both month-ends.
The HKMA’s monetary-base measure comprises Certificates of Indebtedness, government-issued notes and coins in circulation, the banking system balance, and issued Exchange Fund Bills and Notes.
For the foreign-assets measure, the HKMA counts the fund’s external assets but excludes foreign-currency deposits lodged at Hong Kong banks and certificates of deposit those banks have issued. The private-sector category includes deposits at banks and bank-issued certificates of deposit.
The accounts follow the International Monetary Fund’s Special Data Dissemination Standard, which classifies them as analytical accounts of a central bank. The HKMA did not explain what drove the monthly changes.
The HKMA has scheduled two more Exchange Fund releases for Nov. 30: a template on international reserves and foreign-currency liquidity, and the fund’s abridged balance sheet and Currency Board Account.
