HK's foreign currency assets expand in November

Hong Kong's foreign currency assets at the end of November this year were 34.7 billion HK dollars (about 4.47 billion U.S. dollars) higher than at the end of October 2011, the city's Monetary Authority announced Friday. According to the figure, at the end of November 2011, Hong Kong 's total assets of the exchange fund amounted to 2,490.4 billion HK dollars, 33.2 billion HK dollars higher than at the end of October 2011. Foreign currency assets increased by 34.7 billion HK dollars while Hong Kong dollar assets decreased by 1.5 billion HK dollars. The release said the rise in foreign currency assets was mainly due to an increase in unsettled purchases of securities and purchases of foreign currencies with Hong Kong dollars. These increases were partly offset by valuation losses on foreign currency investments. The decline in Hong Kong dollar assets was mainly due to sales of Hong Kong dollars for foreign currencies and valuation losses on Hong Kong equities. The Currency Board Account shows that Hong Kong's Monetary Base at the end of November 2011 was 1,060.2 billion HK dollars, an increase of 1.6 billion HK dollars, or 0.1 percent, from the end of October 2011.