The Exchange Fund's total assets amounted to $1.45 trillion on January 31, up $34.1 billion in December, the Monetary Authority says.

Foreign-currency assets rose $63.8 billion while Hong Kong dollar assets fell $29.7 billion.

The rise in foreign-currency assets was due mainly to valuation gains on foreign-currency investments, interest and dividend income from foreign-currency assets, purchases of foreign currencies with Hong Kong dollars, and increases in Certificates of Indebtedness and repurchase agreements outstanding.

The fall in Hong Kong dollar assets was due mainly to the sale of Hong Kong dollars for foreign currencies, and valuation losses on Hong Kong equities the Exchange Fund holds, which were partly offset by placements received from fiscal reserves.

The Monetary Base was $338.4 billion in January, up $18.1 billion, or 5.7%. The rise was due mainly to increases in market value of Exchange Fund Bills and Notes outstanding and Certificates of Indebtedness, the latter reflecting the seasonal demand for banknotes around the Lunar New Year.

The tap issue of $6 billion of Exchange Fund Bills during the month reflected a shift of funds from the Aggregate Balance to the Exchange Fund paper by about the same amount.