Hong Kong Monetary Authority reports Exchange Fund assets rose to HKD 4,297.1 billion and backing ratio increased to 111.54% at end-June 2025

The Hong Kong Monetary Authority published the Exchange Fund’s abridged balance sheet and Currency Board Account for end-June 2025, reporting total Exchange Fund assets of HKD 4,297.1 billion, up HKD 137.7 billion from end-May. Over the same period, the backing ratio increased to 111.54%. Hong Kong dollar assets rose by HKD 88.5 billion, mainly reflecting an increase in Exchange Fund Bills and Notes issued but not yet settled at month end. Foreign currency assets increased by HKD 49.2 billion, mainly due to interest income, mark-to-market revaluation of investments, and proceeds from the issuance of Government Green Bonds, partly offset by sales of US dollars under the Currency Board arrangements. The Monetary Base declined by HKD 4.7 billion (0.2%) to HKD 2,120.2 billion, mainly due to purchases of Hong Kong dollars under the Currency Board arrangements, partly offset by a higher outstanding amount of Certificates of Indebtedness and the amortisation of discount on Exchange Fund Bills and Notes. Backing Assets increased by HKD 8.6 billion (0.4%) to HKD 2,364.8 billion, driven by interest income, mark-to-market revaluation and issuance of Certificates of Indebtedness, partly offset by sales of US dollars under the Currency Board arrangements. The HKMA also reiterated that it issues four monthly press releases relating to Exchange Fund data, including three releases to disseminate monetary data under the International Monetary Fund’s Special Data Dissemination Standard.