PR. 33
4000038
香港政府
GIS
新聞處
DAILY INFORMATION BULLETIN
SUPPLEMENT
CESDAY, July 10, 1973
STATEMENT BY FINANCIAL SECRETARY
Commenting on the state of the foreign exchange market in Hong
Kong today, the Financial Secretary, Mr. C.P. Haddon-Cave, said that the
volume of business done was less than yesterday.
The rate at which U.S. dollars were bought by the banks was
virtually unchanged from yesterday at HK$4.97125, and any comment which
suggested that the Hong Kong dollar was under pressure to float or be
revalued was quite unjustified.
Mr. Haddon-Cave said he was surprised that the R.1.3. had been
revalued by 5 per cent in relation to the Hong Kong dollar at a time when
the Hong Kong dollar was strengthening against the U.S. dollar and Sterling.
He pointed out that this latest move followed upward adjustments
of the R.M.B. rate in relation to the Hong Kong dollar of one per cent
on June 21 and 12 per cent on June 1.
These adjustments, together with the decision announced today
by the Bank of China, mean that the rate for the R..B. in terms of Hong
Kong dollars is now about 7 per cent higher than at the time of the
revaluation of the Hong Kong dollar in relation to the U.S. dollar of
11 per cent on February 14 last.
Commenting on the likely effect of these exchange rate adjustments
on the cost of living, the Financial Secretary said: "If importers pass
on the full cost to retailers, the cost of living index will rise by about
11⁄2 per cent." He pointed out, however, that in the longer term the
Issued by Government Information Services, Beaconsfield House, Hong Kong. Tel: 5-233191
/prices
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