Hong Kong Monetary Authority reports Exchange Fund assets down to HKD 4,102.6 billion and backing ratio up to 112.19%

The Hong Kong Monetary Authority published the Exchange Fund’s abridged balance sheet and Currency Board Account, reporting total assets of HKD 4,102.6 billion as at 31 July 2025, down HKD 194.5 billion from end-June. Foreign currency assets declined by HKD 106.1 billion and Hong Kong dollar assets by HKD 88.4 billion. The fall in foreign currency assets mainly reflected sales of USD under the Currency Board arrangements and lower month-end balances of unsettled securities purchases, partly offset by investment interest income. Hong Kong dollar assets decreased mainly because fewer Exchange Fund Bills and Notes were issued but not yet settled at month-end. The Monetary Base stood at HKD 2,042.6 billion at end-July, down HKD 77.6 billion (3.7%), mainly due to purchases of Hong Kong dollars under the Currency Board arrangements. Backing Assets fell by HKD 73.3 billion (3.1%) to HKD 2,291.5 billion, while the Backing Ratio increased to 112.19% from 111.54%. HKMA 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 separate release covering the abridged balance sheet and Currency Board Account.