tee points worth noting. First, until Hong Kong dollar interest rates were raised by two percentage points, effective on
24 May
1983, US dollar deposit interest rates were higher than Hong Kong
deposit interest rates(6). Second, it would appear that a
substantial proportion of foreign currency deposits represent
so-called "swap" deposits(7), which should for most analytical
purposes be regarded as
as Hong Kong dollar deposits.
foreign
Third, as
currency denominated aggregates are reported in their
(6)
/Hong Kong
Interest rate differential between
HK$ and Eurodollar deposits (8)
Hong Kong dollar
deposits
US dollar deposits
1
3
6 sav-
1
3
6 sav-
3
30.12.82 7
7/2
mth mths mths ings
mth mths mths ings
72 42 9,1 91
20. 4.83 8
8/2
521⁄2 813
24. 5.83 10 10/2
6. 7.83 9 9/2 ဝါ
103
7/2
6/2
25.7.83 8 81⁄2 8/1 51⁄2 911 10
횝 경우 많은 망우 영우 경우
mth mths
Differentials (USD minus HKD)
6 sav- mths mths ings
7
9
92 633 916
9
913 7
16
912 10
10 7
16
aloo a tu älä al
21 122 123
1층 2층
5
14
16
15
-1100 -11⁄2
16
103 7
11
16
132 155
11/22
(7)
Swap deposits involve customers buying spot foreign currency and placing it on deposit with financial institutions, but at the same time entering into a contract to sell forward such foreign currency back to the financial institutions on the maturity of the deposits. In this sense, the local currency characteristics of these deposits are concealed.
25