Hong Kong Monetary Authority reports Exchange Fund assets rose to HK$4,111.9 billion and backing ratio to 109.90% at end-January 2025

The Hong Kong Monetary Authority published the Exchange Fund’s abridged balance sheet and Currency Board Account, showing total Exchange Fund assets of HK$4,111.9 billion as at 31 January 2025, up HK$29.5 billion from end-December 2024. The Currency Board Account recorded a Monetary Base of HK$1,995.0 billion, an increase of HK$37.4 billion (1.9%), while Backing Assets rose HK$47.8 billion (2.2%) to HK$2,192.4 billion, lifting the Backing Ratio to 109.90% from 109.56%. Foreign currency assets increased by HK$20.8 billion, mainly reflecting issuance of Certificates of Indebtedness and mark-to-market revaluation of investments, partly offset by lower month-end balances of unsettled securities purchases and redemption of Government Green Bonds on maturity. Hong Kong dollar assets rose by HK$8.7 billion, driven by higher placements with banks and partly offset by a decrease in Exchange Fund Bills and Notes issued but not yet settled at month end. The increase in the Monetary Base was attributed mainly to higher Certificates of Indebtedness outstanding, reflecting seasonal banknote demand around Chinese New Year, and amortisation of discount on Exchange Fund Bills and Notes. The HKMA also reiterated that it issues four Exchange Fund data press releases each month, including three releases to meet the International Monetary Fund’s Special Data Dissemination Standard and a fourth release on the abridged balance sheet and Currency Board Account as part of its transparency policy.