Hong Kong exchange fund assets up $13.8bln

Backing assets down $1.8bln due to exchange loss triggered by a stronger Hong Kong dollar and the redemption of Certificates of Indebtedness.

The total assets of the Exchange Fund amounted to $2.2797 trillion on October 31, up $13.8 billion on the end of September.

The Monetary Authority on Friday said foreign currency assets grew by $4.8 billion and Hong Kong dollar assets increased by $9 billion, according to a Monetary Authority report.

Monetary Base as at the end of October was $1.0318 trillion, down $200 million from the end of September. It was mainly due to a decrease in Certificates of Indebtedness.

Backing assets decreased by $1.8 billion to $1.1149 trillion. The decrease was mainly due to exchange loss triggered by a stronger Hong Kong dollar and the redemption of Certificates of Indebtedness which were partly offset by interest from investments.