FRIDAY, JANUARY 6, 1984
HONG KONG DOLLAR DEPOSITS SOAR
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HONG KONG DOLLAR DEPOSITS INCREASED IN NOVEMBER LAST YEAR BY $8.6 BILLION - THE LARGEST MONTHLY INCREASE ON RECORD.
THIS IS REVEALED IN THE MONETARY STATISTICS FOR THE MONTH PUBLISHED TODAY (FRIDAY).
PART OF THE INCREASE, WHICH COMES AGAINST THE BACKGROUND OF A STABILISED EXCHANGE RATE, REFLECTED A SWITCH FROM FOREIGN CURRENCY DEPOSITS WHICH, INCLUSIVE OF SWAP DEPOSITS, FELL BY ABOUT $1.7 BILLION.
THE $8.6 BILLION INCREASE WAS ENCOURAGED BY STABILITY IN THE EXCHANGE VALUE OF THE HONG KONG DOLLAR AND THE REMOVAL OF THE INTEREST WITHHOLDING TAX ON HONG KONG DOLLAR DEPOSITS.
DURING THE MONTH, TOTAL MONEY SUPPLY ON THE BROADER DEFINITIONS, M2 AND M3, ROSE. IN EACH CASE, THE INCREASE WAS MADE UP OF A SUBSTANTIAL GROWTH IN THE HONG KONG DOLLAR COMPONENT, WHICH MORE THAN OFFSET A CONTRACTION IN THE FOREIGN CURRENCY COMPONENT.
THOSE
LOANS AND ADVANCES RECORDED ONLY A MODERATE INCREASE. FOR FINANCING VISIBLE TRADE FELL. WHILE OTHER LOANS FOR USE IN HONG KONG ROSE, BUT NOT SUBSTANTIALLY.
HONG KONG DOLLAR MONEY SUPPLY
HONG KONG DOLLAR MONEY SUPPLY ON THE BROADER DEFINITIONS, HK$M2 AND HK$M3, CONTINUED TO GROW AT FAIRLY RAPID RATES, AT 4.6 PER CENT AND 5.5 PER CENT RESPECTIVELY. THE CORRESPONDING GROWTH RATES IN OCTOBER WERE 0.9 PER CENT AND 3.1 PER CENT. HK$M1 FELL BY 0.5 PER CENT, COMPARED WITH AN INCREASE IN OCTOBER OF 0.7 PER CENT. THERE WAS SOME CONTRACTION IN THE PUBLIC'S HOLDING OF NOTES AND COIN.
IN THE THREE MONTHS TO NOVEMBER, HK$M1 GREW BY 1.1 PER CENT, HK$M2 BY 5.2 PER CENT AND HK$M3 BY 8.2 PER CENT, OVER THE TWELVE MONTHS, THE CORRESPONDING GROWTH RATES WERE 10.2 PER CENT, 13.6 PER CENT AND 10.1 PER CENT.
TOTAL MONEY SUPPLY
TOTAL M1 WAS VIRTUALLY UNCHANGED AFTER AN INCREASE OF 1.1 PGR CENT IN OCTOBER. TOTAL M2 AND TOTAL M3 ROSE BY 1.2 PER CENT AND 2.3 PER CENT RESPECTIVELY, IN CONTRAST TO THE CORRESPONDING DECLINES IN OCTOBER OF 2.5 PER CENT AND 1.7 PER CENT.
IN THE THREE MONTHS TO NOVEMBER, TOTAL M1 GREW BY TWO PER CENT, TOTAL M2 BY 2.3 PER CENT AND TOTAL M3 BY 4.4 PER CENT. OVER THE TWELVE MONTHS, THEY GREW BY 7.9 PER CENT, 24.3 PER CENT AND 22.3 PER CENT RESPECTIVELY.
/DEPOSITS