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FRIDAY, DECEMBER 2, 1983
IN THE THREE MONTHS TO OCTOBER, TOTAL M1 GREW BY 5.5 PER CENT, TOTAL M2 BY 4.3 PER CENT AND TOTAL M3 BY 5.0 PER CENT. OVER THE TWELVE MONTHS, THE CORRESPONDING INCREASES WERE 6.4 PER CENT, 22.0 PER CENT AND 19.3 PER CENT.
DEPOSITS
HONG KONG DOLLAR DEPOSITS WITH BANKS AND DEPOSIT-TAKING COMPANIES CREW BY 3.9 PER CENT IN OCTOBER, AFTER A DECLINE OF 1.0 PER CENT IN SEPTEMBER.
THERE WAS PROBABLY SOME SWITCH BY PERSONAL CUSTOMERS OUT OF FOREIGN CURRENCY SWAP DEPOSITS BACK TO HONG KONG DOLLAR DEPOSITS, CONSEQUENT UPON THE REMOVAL OF THE 10 PER CENT INTEREST
WITHHOLDING TAX ON HONG KONG DOLLAR DEPOSITS ON OCTOBER 17, 1983, WHILE THE STABILISATION OF THE EXCHANGE RATE MAY HAVE INDUCED A MORE GENERAL WILLINGNESS TO HOLD THE LOCAL CURRENCY.
WITHIN THE TOTAL, THERE WAS A SHIFT FROM SAVINGS DEPOSITS
INTO TIME DEPOSITS.
IN THE THREE MONTHS TO OCTOBER, HONG KONG DOLLAR DEPOSITS INCREASED BY 2.8 PER CENT AND OVER THE TWELVE MONTHS BY 3.5 PER CENT.
FOREIGN CURRENCY DEPOSITS FELL SHARPLY BY 6.5 PER CENT. COMPARED WITH AN INCREASE OF 8.2 PER CENT IN SEPTEMBER PART OF THE DECLINE WAS ACCOUNTED FOR BY THE VALUATION EFFECT OF THE STRONGER HONG KONG DOLLAR.
LOANS AND ADVANCES
TOTAL LOANS AND ADVANCES EXTENDED BY BANKS AND DEPOSIT- TAKING COMPANIES FELL BY 0.9 PER CENT, AFTER AN INCREASE OF 5.5 PER CENT IN SEPTEMBER.
IN THE THREE MONTHS TO OCTOBER, THEY GREW BY 6.8 PER CENT, AND OVER THE TWELVE MONTHS, BY 20.5 PER CENT.
WITHIN THIS TOTAL, HONG KONG DOLLAR LOANS TO FINANCE VISIBLE TRADE OF HONG KONG RECORDED AN INCREASE OF 3.0 PER CENT IN OCTOBER FOLLOWING ONE OF 0.5 PER CENT IN SEPTEMBER.
SIMILAR LOANS DENOMINATED IN FOREIGN CURRENCY, HOWEVER, FELL BY 7.0 PER CENT COMPARED WITH A RISE OF 12.2 PER CENT IN SEPTEMBER, BOTH FIGURES PARTLY EXPLAINING THE VALUATION EFFECT OF MOVEMENTS IN THE EXCHANGE RATE.
OTHER LOANS FOR USE IN HONG KONG, MOST OF WHICH ARE DENOMINATED IN HONG KONG DOLLARS, FELL BY 0.3 PER CENT FOLLOWING AN INCREASE OF 3.4 PER CENT IN SEPTEMBER.
/FOREIGN CURRENCY