Exchange Fund's total assets plunged to $2.8472t

On the back of lower foreign currency assets.

In a report, the Monetary Authority announced the Exchange Fund’s total assets amounted to $2.8472 trillion at the end of June, down $37.9 billion on May.

Foreign currency assets decreased by $18 billion and Hong Kong dollar assets decreased by $19.9 billion.

The decline in foreign currency assets was mainly due to valuation losses on foreign currency investments. The decline in Hong Kong dollar assets was mainly due to fiscal drawdowns and valuation losses on Hong Kong equities.

The Monetary Base at the end of June was $1.2376 trillion, up $5.2 billion, or 0.4%, on the end of May. The rise was mainly due to an increase in the outstanding amount of Certificates of Indebtedness.

Backing Assets increased by $1.2 billion, or 0.1%, to $1.3324 trillion at the end of June. The rise was mainly attributable to an increase in assets connected with the issuance of additional Certificates of Indebtedness, which was largely offset by revaluation losses. The backing ratio decreased to 107.66% at the end of June.