The following is issued on behalf of the Hong Kong Monetary Authority:

Exchange Fund at US$532.8 billion

For more information, please contact

Melissa Ng in New York City: (212) 752 3320
Wing Yan Tong in San Francisco: (415) 835 9315

Daniel McAtee in Washington, D.C.: (202) 238 6360

August 31, 2020 - The Hong Kong Monetary Authority announced today that the total assets of the Exchange Fund amounted to HK$4,156.1 billion (US$532. 8 billion) as at July 31, 2020. This is HK$39.1 billion (US$5 billion) lower than that at the end of June 2020. Hong Kong dollar assets decreased by HK$70 billion (US$8.9 billion) while foreign currency assets increased by HK$30.9 billion (US$3.9 billion).

The decline in Hong Kong dollar assets was mainly due to a decrease in Exchange Fund Bills and Notes issued but not yet settled, which was partly offset by the mark-to-market revaluation of Hong Kong equities. The rise in foreign currency assets was mainly due to the income from foreign currency investments, which was partly offset by a decrease in unsettled purchase of securities.

The Currency Board Account shows that the Monetary Base at the end of July 2020 was HK$1,801.4 billion (US$230.9 billion), increased by HK$52.5 billion (US$6.7 billion), or 3.0 per cent, from the end of June 2020. The rise was mainly due to the sale of Hong Kong dollars under the Currency Board arrangements.

Backing Assets increased by HK$54 billion (US$6.9 billion), or 2.8 per cent, to HK$2,007.1 billion (US$257.3 billion). The increase was mainly attributable to the purchase of US dollars under the Currency Board arrangements. The backing ratio decreased from 111.68 per cent at the end of June 2020 to 111.42 per