5.
I
WEDNESDAY, AUGUST 3, 1983
TOTAL MONEY SUPPLY
TOTAL MONEY SUPPLY ON ALL DEFINITIONS INCREASED. TOTAL Mi ROSE BY 5.9 PER CENT. COMPARED WITH A FALL OF 0.1 PER CENT IN MAY. TOTAL M2 ROSE BY 2.8 PER CENT FOLLOWING A RISE OF 2.3 PER CENT IN MAY, TOTAL M3 ROSE BY 1.9 PER CENT, SAME AS IN MAY.
IN THE THREE MONTHS TO JUNE, TOTAL M1 GREW BY 4.7 PER CENT, TOTAL M2 AND TOTAL M3 BY 5.2 PER CENT AND 3.9 PER CENT RESPECTIVELY, OVER THE TWELVE MONTHS, THE CORRESPONDING INCREASES WERE 15.2 PER CENT, 40.3 PER CENT AND 28.1 PER CENT.
DEPOSITS
HONG KONG DOLLAR DEPOSITS FELL BY 0.1 PER CENT, FOLLOWING A FALL OF 0.9 PER CENT IN MAY.
FOREIGN CURRENCY DEPOSITS GREW BY 4.5 PER CENT COMPARED WITH 6.0 PER CENT IN MAY.
OVER THE THREE MONTHS, HONG KONG DOLLAR DEPOSITS FELL BY 1.7 PER CENT WHILE FOREIGN CURRENCY DEPOSITS GREW BY 12.6 PER CENT. OVER THE TWELVE MONTHS, THE CORRESPONDING INCREASES WERE 1.0 PER CENT AND 80.4 PER CENT.
MUCH OF THE INCREASE IN FOREIGN CURRENCY DEPOSITS REPRESENTS AN ADDITION TO THE TOTAL DEPOSIT BASE, BUT SOME REFLECTS A SHIFT AWAY FROM HONG KONG DOLLAR DEPOSITS, PART OF WHICH REFLECTS, IN TURN, THE INCREASING POPULARITY OF SO-CALLED +SWAP+ DEPOSITS.
THESE 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 DEPOSIT.
THESE +SWAPS+ HINDER INTERPRETATION OF THE MONETARY STATISTICS, SINCE FOR CERTAIN ANALYTICAL PURPOSES THEY SHOULD BE REGARDED AS HONG KONG DOLLAR DEPOSITS FOR EXAMPLE, A SWAP TRANSACTION DOES NOT ITSELF EXERT PRESSURE ON THE EXCHANGE RATE IN THE WAY THAT AN OUTRIGHT FOREIGN EXCHANGE TRANSACTION MAY.
LOANS AND ADVANCES
TOTAL LOANS AND ADVANCES EXTENDED BY BANKS AND DEPOSIT- TAKING COMPANIES GREW BY A MARGINAL 0.7 PER CENT AGAINST A 2.3 PER CENT RISE IN MAY.
/IN THE