The Exchange Fund's total assets rose $50.3 billion to $1.119 trillion in January, the Monetary Authority says. Both foreign currency assets and Hong Kong dollar assets rose, by $32.5 billion and $17.8 billion.

The rise in foreign currency assets was due mainly to an increase in Certificates of Indebtedness, valuation gains on foreign currency investments together with interest and dividends from foreign currency assets.

The rise in Hong Kong dollar assets was due mainly to placements received from fiscal reserves and valuation gains in the market value of Hong Kong equities held by the Exchange Fund, which were partly offset by a fall in bank borrowings.

The Currency Board Account shows that the Monetary Base at the end of January 2006 was $303.8 billion, an increase of $19.8 billion, or 7.0%, from the end of December.

The rise was due mainly to increases in Certificates of Indebtedness and in Government-issued currency notes, reflecting Lunar New Year demand for banknotes.

Backing Assets rose by $19.7 billion, or 6.2%, to $336.5 billion. The rise was attributable mainly to corresponding increases in Certificates of Indebtedness and in Government-issued currency notes in the Monetary Base together with interest from investments, which were partly offset by revaluation losses.