THURSDAY, JANUARY 28, 1988
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ARTICLE ON REVISION OF HK DOLLAR EFFECTIVE EXCHANGE RATE INDEXES
HONG
THE NOVEMBER 1987 ISSUE OF THE
KONG MONTHLY DIGEST OF " 'REVISION OF THE STATISTICS CONTAINS A SPECIAL REVIEW ARTICLE on the EFFECTIVE EXCHANGE RATE INDEXES (EERI) FOR THE HONG KONG DOLLAR".
A CENSUS AND STATISTICS DEPARTMENT SPOKESMAN SAID TODAY IN EARLY {THURSDAY) THAT A THOROUGH REVIEW OF THE EERI WAS CONDUCTED 1987 IN VIEW OF THE SIGNIFICANT CHANGES IN RECENT YEARS IN HONG KONG'S U.S. DOLLAR TRADE PATTERN AND OF LINKING THE HONG KONG DOLLAR TO THE SINCE OCTOBER 17, 1983.
THE RECOMMENDATIONS FOLLOWING THIS REVIEW WERE SUBSEQUENTLY ADOPTED, AFTER CONSULTATION WITHIN AND OUTSIDE GOVERNMENT, FOR ERRI WAS IMPROVING THE METHOD OF COMPILING THE EERI. A NEW SERIES OF INTRODUCED AT THE END OF LAST YEAR.
THE ARTICLE DESCRIBES THE MAJOR FINDINGS OF THE RECENT REVIEW
NAMELY FORMULA.
THE WHICH HAS COVERED THE MAJOR ASPECTS OF THE BERI WEIGHTING SCHEME, THE TYPE OF INDEX, THE METHOD OF AVERAGING
EXCHANGE MOVEMENTS OF
RATES, THE BASE DATES AND THE BASKET OF CURRENCIES FOR COMPARISON WITH THE HONG KONG DOLLAR,
THE ARTICLE ALSO DISCUSSES IN DETAIL
TO THE
THE
MAJOR THREE IMPROVEMENTS
NEW SERIES OF
THE EERI OVER
OLD SERIES,
THE BASE NAMELY: (I) UPDATING
DATE FROM DECEMBER 18, 1971. ΤΟ
WEIGHTS OCTOBER 24 TO 28, 1983; (II) UPDATING THE TRADE
BE USED TO THAT BASED ON THE TRADE PATTERN OF 1981 TO A NEW SET 'BASED ON THE AVERAGE TRADE PATTERNS OF 1984 TO 1986; AND (III) THE USE OF GEOMETRIC AVERAGING TO REPLACE ARITHMETIC AVERAGING IN THE FORMULA FOR COMPILING THE FERI.
THE
MOREOVER, AS SOME USERS MAY HAVE DIFFICULTIES IN UNDERSTANDING AND INTERPRETING THE NEW INDEX DUE TO
TECHNICAL NATURE OF THE TO DISPELLING SOME CHANGES INTRODUCED, A SECTION IS DEVOTED
COMMON
FALLACIES ABOUT THE NEW EERI.
ON SALE AT THE HONG KONG MONTHLY DIGEST OF STATISTICS IS NOW
AT $28 PER COPY. PURCHASES MAY BE MADE
PUBLICATIONS THE GOVERNMENT
PLACE: OR AT SALES CENTRE, GENERAL POST OFFICE BUILDING, CONNAUGHT
19TH THE CENSUS AND STATISTICS DEPARTMENT PUBLICATION SALES COUNTER, FLOOR, WAN CHAI TOWER 1, 12 HARBOUR ROAD, HONG KONG.
FURTHER ENQUIRIES CAN BE MADE TO THE TRADE ANALYSIS SECTION THE CENSUS AND STATISTICS DEPARTMENT ON 5-8234914.
OF
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