The Macao Special Administrative Region (SAR) government's foreign exchange reserve reached 43.54 billion patacas (5.4 billion US dollars) in 2004, according to the official figures released on Friday.

The Macao Monetary Authority's statistics showed that the amount of exchange reserves represented an increase of 25.4 percent from the previous year.

By the end of last year, the government's fund reserve reached 10.89 billion patacas (1.36 billion US dollars).

Anselmo Teng, president of the bureau said that the Macao SAR government would continue to follow a prudent investment strategy in managing the reserves.

He also pointed out that Macao has witnessed a steady development of the renminbi business since the mainland's circulating currency was officially introduced to Macao in November 2004.

As to the end of November last year, the balance of renminbi deposit totaled 49.63 million renminbi yuan (6 million US dollars), which increased to 105 million yuan (13 million US dollars) by the end of January this year.

Teng said that in order to ensure the stability and convertibility of the pataca, Macao's circulating currency, the SAR government would continue to adopt the policies of free flow of fund, no exchange control, market-driven interest rate movement and the peg with Hong Kong dollars.

He stressed that the bureau would expand the supervision scope to include anti-money laundering and anti-terrorist financing through on-site inspection, off-site surveillance and other tools and measures.