Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced that the total assets of the Exchange Fund amounted to HK$4,062.9 billion as of April 30, 2024, a decrease of HK$0.9 billion from the end of March 2024. This was driven by a HK$82.4 billion decrease in foreign currency assets, which was partially offset by an HK$81.5 billion increase in Hong Kong dollar assets. The decline in foreign currency assets was mainly due to mark-to-market revaluation of investments and reduced month-end balances of unsettled securities purchases. The rise in Hong Kong dollar assets was primarily due to an increase in Exchange Fund Bills and Notes issued but not yet settled. The Currency Board Account shows the Monetary Base decreased by HK$2.0 billion, or 0.1%, to HK$1,916.2 billion at the end of April 2024. This was mainly due to a decrease in the outstanding amount of Certificates of Indebtedness, partially offset by amortization of discounts on Exchange Fund Bills and Notes. The Backing Assets decreased by HK$8.5 billion, or 0.4%, to HK$2,123.0 billion, driven by the redemption of Certificates of Indebtedness and mark-to-market revaluation of investments, which were partly offset by investment income. As a result, the Backing Ratio decreased from 111.12% at the end of March 2024 to 110.79% at the end of April 2024. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/05/20240531-5/