The Hong Kong Monetary Authority (HKMA) announced Friday that the total assets of the Exchange Fund amounted to 1,187.3 billion HK dollars (152.8 billion U.S. dollars) on Nov. 30, this year.

The figures were 24.5 billion HK dollars higher than at the end of October, 2006. Foreign currency assets increased by 10.5 billion HK dollars and Hong Kong dollar assets increased by 14.0 billion HK dollars, said HKMA.

The rise in foreign currency assets was due mainly to valuation gains on foreign currency investments, and interest and dividend income from foreign currency assets.

The rise in Hong Kong dollar assets was due mainly to placements received from fiscal reserves and valuation of Hong Kong equities held by the Exchange Fund. These increases were partly offset by a decrease in bank borrowings.

The Currency Board Account shows that the Monetary Base at the end of November, 2006 was 291.7 billion HK dollars, a decrease of 0.3 billion HK dollars, or 0.1 percent, from the end of October, 2006. The decline was due mainly to a decrease in Certificates of Indebtedness which was partly offset by an increase in the market value of Exchange Fund Bills and Notes outstanding.

The Backing Assets increased by 1.2 billion HK dollars, or 0.4 percent, to 327.2 billion HK dollars. The increase was attributable mainly to the interest from investments and revaluation gains, which were partly offset by the redemption of Certificates of Indebtedness in the Monetary Base.

Reflecting this, the backing ratio rose from 111.60 percent at the end of October, 2006 to 112.14 percent at the end of November, 2006, said HKMA. (One U.S. dollar equals 7.768 HK dollars)

Source: Xinhua