The Hong Kong Monetary Authority ("HKMA") announced that the total assets of the Exchange Fund reached HK$4,159.5 billion by 31 May 2025, up by HK$186.2 billion from April. Foreign currency assets rose by HK$208.1 billion, while Hong Kong dollar assets fell by HK$21.9 billion. The Currency Board Account showed a Monetary Base of HK$2,124.9 billion, increased by 7.2% from April. Backing Assets also increased by 7.4%, reaching HK$2,356.2 billion with a Backing Ratio of 110.88%.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Hong Kong Monetary Authority ("HKMA") reported today, June 30, 2025, that the Exchange Fund's total assets reached HK$4,159.5 billion by the end of May 2025. This marked an increase of HK$186.2 billion over the previous month.
The upward trend was primarily driven by a HK$208.1 billion increase in foreign currency assets and a HK$21.9 billion decline in Hong Kong dollar assets. The surge in foreign currency assets was attributable to the Currency Board arrangements and the revaluation of investments, while the decrease in Hong Kong dollar assets was largely due to reduced bank placements, partly offset by the revaluation of Hong Kong equities.
The Currency Board Account, as of May 31, 2025, indicated that the Monetary Base reached HK$2,124.9 billion, reflecting a HK$142.2 billion or 7.2% increase from April 2025. This growth was mainly driven by the sale of HK dollars under Currency Board arrangements.
The amount of Backing Assets rose by HK$162.8 billion or 7.4%, reaching HK$2,356.2 billion by the end of May 2025. The increase was primarily due to the purchase of US dollars under the Currency Board arrangements and the translation effect of foreign currency investments into Hong Kong dollars. Consequently, the Backing Ratio increased to 110.88% by the end of May 2025, up from 110.62% in April 2025.
The HKMA provides comprehensive data on the Exchange Fund through its monthly press releases. Three releases are issued to meet the Special Data Dissemination Standard ("SDDS") of the International Monetary Fund, while the fourth release details the Exchange Fund’s Abridged Balance Sheet and Currency Board Account in line with the HKMA’s transparency policy.
The press release schedule for June 2025 is as follows:
- June 6: International Reserves
- June 13: Analytical Accounts of the Central Bank
- June 30: Exchange Fund Abridged Balance Sheet and Currency Board Account
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