1.9
Movements in the exchange value of the Hong Kong
dollar during the third quarter were out of line with the
current strength of the economy.
After remaining
relatively stable in July, the Hong Kong dollar weakened
sharply in August and September (paragraph 3.11). The weakness largely reflected the nervous political sentiment and the worldwide strength of the US dollar.
1.10
The
supply money
figures
to continued
be
distorted by the existence of swap deposits and by the
valuation effect of the weaker Hong Kong dollar, thus making interpretation difficult (paragraph 3.3). Total
loans and advances extended by banks
by banks and deposit-taking
companies increased slightly during the
(paragraph 3.6).
third
quarter
4