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The Exchange Fund's total assets amounted to $1.863 billion on July 31 - up $30.7 billion from the end of June, the Hong Kong Monetary Authority says.
Foreign-currency assets increased $39.1 billion while Hong Kong dollar assets fell $8.4 billion.
The rise in foreign-currency assets was due mainly to purchases of foreign currencies with Hong Kong dollars and valuation gains on foreign-currency investments.These gains were partly offset by a fall in securities purchased but settled in the following month.
The decline in Hong Kong dollar assets was due mainly to a decrease in Exchange Fund Bills and Notes issued but not yet settled, and fiscal drawdowns, which were partly offset by valuation gains on Hong Kong equities the Exchange Fund holds and an increase in bank borrowings.
The monetary base at the end of July 2009 was $770.7 billion, up $66 billion, or 9.4%, from the end of June. The rise was due mainly to an inflow of funds into the Hong Kong dollar.
The backing assets increased $66.4 billion, or 8.9%, to $814.3 billion, due mainly to the rise in the Monetary Base together with investments interest. At the end of July, the backing ratio stood at 105.65%, compared with 106.13% at the end of June.
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