Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) has announced that as of 31 March 2024, the total assets of the Exchange Fund amounted to HK$4,063.8 billion. This represents an increase of HK$22.9 billion compared to the end of February 2024. The growth in total assets was primarily driven by a HK$23.2 billion increase in foreign currency assets, while Hong Kong dollar assets decreased by HK$0.3 billion. The rise in foreign currency assets was mainly attributed to mark-to-market revaluation of investments and interest income from investments. On the other hand, the decline in Hong Kong dollar assets was primarily due to mark-to-market revaluation of Hong Kong equities and a reduction in the month-end balances of unsettled securities purchases. In terms of the Monetary Base, it stood at HK$1,918.1 billion at the end of March 2024, reflecting an increase of HK$8.4 billion or 0.4% compared to the end of February 2024. The growth in the Monetary Base was mainly driven by an increase in the outstanding amount of Certificates of Indebtedness and the amortization of discount on Exchange Fund Bills and Notes. Additionally, the Backing Assets, which support the Currency Board system, increased by HK$13.6 billion or 0.6% to HK$2,131.5 billion at the end of March 2024. This increase was primarily attributed to interest income from investments and the issuance of Certificates of Indebtedness. As a result, the Backing Ratio, which measures the level of assets backing the Monetary Base, rose from 110.90% at the end of February 2024 to 111.12% at the end of March 2024. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/04/20240430-6/