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FRIDAY, JANUARY 24, 1992
"THIS COULD LEAD TO SEVERE MARKET
DAMAGE TO THE WHOLE ECONOMY,
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HE SAID,
DISRUPTION AND SERIOUS
SIMILAR CLEARING SYSTEMS HAVE BEEN ESTABLISHED IN MAJOR MARKETS SUCH AS NEW YORK AND LONDON AS WELL AS REGIONAL MARKETS LIKE SINGAPORE, SOUTH KOREA AND THAILAND.
THE BILL IS GAZETTED TODAY.
LIQUIDITY IN INTERBANK MARKET
* * *
THE OFFICE OF THE EXCHANGE FUND OPERATED IN THE MONEY MARKET EARLY THIS (FRIDAY) MORNING AND INJECTED ADDITIONAL LIQUIDITY INTO THE INTERBANK MARKET.
THE BALANCE IN HONGKONG BANK'S ACCOUNT MAINTAINED WITH THE EXCHANGE FUND WAS INCREASED FROM HK$500 MILLION (AFTER THE WITHDRAWAL OF LATE LIQUIDITY ASSISTANCE PROVIDED YESTERDAY) TO HK$600 MILLION.
THE INTERBANK INTEREST RATES HAVE BEEN FIRM AHEAD OF THE LUNAR NEW YEAR, WITH THE RATE FOR OVERNIGHT MONEY TOUCHING SEVEN PER CENT EARLIER IN THE WEEK.
THAN
THE LONGER TERM RATES HAVE ALSO BEEN SUBSTANTIALLY HIGHER THE CORRESPONDING RATES FOR THE U.S. DOLLAR. THE EXCHANGE RATE HAS ALSO BEEN ON THE STRONGER SIDE OF 7.80.
IN COMMENTING ON THE OPERATION, THE DIRECTOR OF THE OFFICE OF THE EXCHANGE FUND, MR JOSEPH YAM, SAID THE ADDITIONAL LIQUIDITY WAS INJECTED TO RELIEVE TEMPORARY TIGHTNESS IN THE INTERBANK MARKET AHEAD OF THE LUNAR NEW YEAR.
"IT SHOULD NOT BE TAKEN AS A SIGNAL FOR LOWER BANK DEPOSIT RATES AND LENDING RATES. THESE ARE MATTERS FOR НКАВ (HONG KONG ASSOCIATION OF BANKS) AND INDIVIDUAL BANKS RESPECTIVELY, THE DIRECTOR SAID.
"
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