The total assets of the Exchange Fund amounted to $963 billion at August 31, $1.6 billion higher than in July.

The Monetary Authority said foreign currency assets fell $300 million while Hong Kong dollar assets increased $1.9 billion.

The fall was mainly due to the sale of foreign currencies for Hong Kong dollars, which was partly offset by an increase in repurchase agreements and income from foreign currency assets.

The increase in Hong Kong dollar assets was mainly due to the purchase of Hong Kong dollars from foreign currencies, an increase in bank borrowings and valuation gains in the market value of Hong Kong equities held by the Exchange Fund.

These increases were partly offset by fiscal drawdowns.

Figures in the Currency Board Account show that the monetary base at the end of August was $255 billion, an increase of $1.9 billion or 0.7% from the end of July.

The increase was mainly due to an increase in Certificates of Indebtedness of $1.9 billion.

The backing assets increased $2 billion or 0.7% to $285.4 billion. The increase was mainly attributable to the corresponding increase in Certificates of Indebtedness in the monetary base.

At the end of August, the backing ratio stood at 111.91%, compared to 111.94% at the end of July.