Hong Kong Monetary Authority reports Exchange Fund assets fall to HKD 3,978.9 billion while the backing ratio rises to 110.55%

The Hong Kong Monetary Authority published the Exchange Fund’s abridged balance sheet and Currency Board Account for 31 March 2025, showing total assets of HKD 3,978.9 billion, down HKD 30.1 billion from end-February 2025. Foreign currency assets decreased by HKD 54.2 billion while Hong Kong dollar assets increased by HKD 24.1 billion. Withdrawals of Fiscal Reserves placements and a reduction in month-end balances of unsettled purchase of securities were cited as the main drivers of the fall in foreign currency assets, partly offset by interest income from investments. Higher Hong Kong dollar assets were mainly attributed to increased placements with banks. The Monetary Base rose by HKD 1.2 billion (0.1%) to HKD 1,977.1 billion, mainly reflecting amortisation of discount on Exchange Fund Bills and Notes, partly offset by a decrease in the outstanding amount of Certificates of Indebtedness. Backing Assets increased by HKD 6.9 billion (0.3%) to HKD 2,185.7 billion, driven by interest income and mark-to-market revaluation, partly offset by redemption of Certificates of Indebtedness; the Backing Ratio rose from 110.27% to 110.55%. The HKMA noted it issues four monthly press releases on Exchange Fund data, including three releases aligned with the International Monetary Fund’s Special Data Dissemination Standard and a fourth on the abridged balance sheet and Currency Board Account as part of its transparency policy.