WEDNESDAY, JULY 15, 1992
1
FS MAKES STATEMENT ON EXCHANGE FUND
TO
IN A STATEMENT TO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, ANNOUNCED HIS DECISION PUBLISH A BALANCE SHEET SHOWING THE ASSETS AND LIABILITIES OF EXCHANGE FUND.
THE
END OF 1991 THE EARNINGS OF
THE BALANCE SHEET WILL SHOW THAT AT THE EXCHANGE FUND STOOD AT HK$236 BILLION. THE ACCUMULATED THE FUND STOOD AT HK$99 BILLION.
MR MACLEOD SAID:
"WHEN PUT IN PERSPECTIVE, THESE FIGURES ARE VERY IMPRESSIVE INDEED. THE TOTAL FOREIGN CURRENCY ASSETS HELD BY THE FUND WERE EQUIVALENT TO US$29 BILLION.
IN
"HONG KONG'S FOREIGN CURRENCY HOLDINGS ARE THE 12TH HIGHEST THE WORLD EVEN THOUGH ON A GDP COMPARISON HONG KONG WOULD BE RANKED ONLY 34TH.
HOLDINGS
"AT US$5,000, HONG KONG'S PER CAPITA FOREIGN CURRENCY ARE FAR HIGHER THAN THE AVERAGE OF ONLY US$740 FOR THE OECD MEMBER COUNTRIES.
BREAK
MR
MACLEOD EXPLAINED TO LEGCO MEMBERS THAT HE HAD DECIDED ΤΟ THE ESTABLISHED POLICY OF CONFIDENTIALITY ON THE EXCHANGE FUND BECAUSE CIRCUMSTANCES HAVE CHANGED.
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"[ BELIEVE THAT THE GOVERNMENT OWES THE COMMUNITY A DUTY OF FRANKNESS AND OPENNESS ON MAJOR ISSUES OF PUBLIC POLICY THE CASE FOR CONFIDENTIALITY HAS FALLEN AWAY AS OUR MONETARY FRAMEWORK HAS BEEN DEVELOPED AND STRENGTHENED.'
**
MR MACLEOD EXPLAINED THAT HE ALSO TOOK INTO ACCOUNT THE FACT THAT MOST MAJOR ECONOMIES PUBLISH SUCH INFORMATION AND THAT THE INTERNATIONAL MONETARY FUND HAS RECOMMENDED THAT HONG KONG FOLLOW THIS PRACTICE.
"PUBLICATION OF THE EXCHANGE FUND BALANCE SHEET WILL MAKE CLEAR THE STRENGTH OF HONG KONG'S FINANCIAL POSITION TO POTENTIAL LENDERS AND CREDIT RATING AGENCIES AND ENABLE THEM ΤΟ MAKE AN ACCURATE ASSESSMENT OF OUR CREDIT WORTHINESS."
ΤΟ MAKE COMPARISONS EASIER, MR MACLEOD SAID HE WOULD ALSO PUBLISH THE FIGURES FOR THE PERIOD 1986-90.
HE SAID HE WOULD PUBLISH A BALANCE SHEET FOR THE EXCHANGE FUND EVERY YEAR AT ABOUT THIS TIME.
/EXCHANGE FUND