1988-07-15 16:21 MONETARY AFFAIRS BRANCH.
852 5 865 6146 P.04
- 2 ·
3.
With the new accounting arrangements, the Exchange Fund will in effect become the ultimate provider of liquidity to the interbank market. It will be capable of influencing much more effectively the availability and the price of money in the interbank market and will be in a much better position to maintain exchange rate stability within the framework of the linked exchange rate system.
4.
The new accounting arrangements have no effect on the day to day operation of licensed banks in Hong Kong, other than HSBC, which, in addition to becoming more active as a consequence of having to maintain equilibrium between the Balance and the net clearing balance, will be able to direct its other activities in the money and foreign exchange markets more towards its own commercial requirements.
5.
These arrangements will come into effect on Monday, 18 July 1988. The Secretary for Monetary Affairs has today sent out a paper explaining in detail the new accounting A copy of the paper arrangements to all licensed banks. is attached.
The Hongkong and Shanghai Banking Corporation Monetary Affairs Branch, Government Secretariat 15 July 1988