The Hong Kong Monetary Authority published the Exchange Fund’s abridged balance sheet and Currency Board Account, showing total Exchange Fund assets of HKD 4,009.0 billion at 28 February 2025, down HKD 102.9 billion from end-January. Hong Kong dollar assets fell HKD 76.0 billion and foreign currency assets fell HKD 26.9 billion. The reduction in Hong Kong dollar assets was mainly attributed to a lower amount of Exchange Fund Bills and Notes issued but not yet settled at month-end. The decline in foreign currency assets was mainly driven by withdrawals of Fiscal Reserves placements and redemption of Certificates of Indebtedness, partly offset by higher month-end balances of unsettled securities purchases and investment interest income. In the Currency Board Account, the Monetary Base decreased by HKD 19.0 billion (1.0%) to HKD 1,975.9 billion, mainly reflecting a fall in outstanding Certificates of Indebtedness, partly offset by amortisation of discount on Exchange Fund Bills and Notes. Backing Assets fell by HKD 13.7 billion (0.6%) to HKD 2,178.8 billion, while the Backing Ratio increased to 110.27% from 109.90%, with the change in Backing Assets mainly linked to redemption of Certificates of Indebtedness, partly offset by investment interest income and mark-to-market revaluation.
Hong Kong Monetary Authority 2025-03-31
Hong Kong Monetary Authority reports Exchange Fund assets fell to HKD 4,009.0 billion and backing ratio rose to 110.27% at end-February 2025
The Hong Kong Monetary Authority released the Exchange Fund’s abridged balance sheet and Currency Board Account, showing a decrease in total Exchange Fund assets to HKD 4,009.0 billion as of 28 February 2025, down HKD 102.9 billion from January. The decline was due to reduced Hong Kong dollar and foreign currency assets, including lower Exchange Fund Bills and Notes and withdrawals of Fiscal Reserves placements. The Monetary Base fell by HKD 19.0 billion to HKD 1,975.9 billion, while the Backing Ratio rose to 110.27%.