XN000022-1982-12-02 — Page 7

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THURSDAY, DECEMBER 2, 1982

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TOTAL (ALL CURRENCIES) MONEY SUPPLY

TOTAL M1 ROSE BY 1.4 PER CENT, TOTAL M2 BY 3.8 PER CENT AND TOTAL M3 BY 3.1 PER CENT IN OCTOBER. THESE RATES ARE SIGNIFICANTLY LOWER THAN THOSE RECORDED IN THE PREVIOUS MONTH AT 6.4 PER CENT, 6.3 PER CENT AND 4.1 PER CENT RESPECTIVELY.

IN THE THREE MONTHS TO OCTOBER M1 ROSE BY 10.0 PER CENT, M2 BY 17.3 PER CENT AND M3 BY 11.7 PER CENT. DURING THE TWELVE MONTHS TO OCTOBER THESE THREE AGGREGATES ROSE BY 20.5 PER CENT, 86.8 PER CENT AND 44.7 PER CENT RESPECTIVELY.

LOANS AND ADVANCES

THE UPTURN, ALTHOUGH PROBABLY SEASONAL, SEEN IN SEPTEMBER IN OUTSTANDING LOANS AND ADVANCES TO FINANCE VISIBLE TRADE OF HONG KONG CONTINUED INTO OCTOBER. A GROWTH OF 1.4 PER CENT WAS RECORDED, FOLLOWING 0.5 PER CENT IN SEPTEMBER. IN THE THREE MONTHS' TO OCTOBER THE INCREASE WAS 1.7 PER CENT, AND OVER TWELVE MONTHS 14.3 PER CENT. OTHER LOANS FOR USE IN HONG KONG INCREASED BY 1.9 PER CENT IN OCTOBER, AFTER AN INCREASE OF 3.1 PER CENT IN SEPTEMBER. OVER THREE MONTHS THE INCREASE WAS 7.2 PER CENT, AND OVER TWELVE MONTHS 37.1 PER CENT.

FOREIGN CURRENCY ASSETS AND. LIABILITIES

THERE WERE INCREASES IN OCTOBER OF $30.5 BN TO $562.6 BN IN THE SPOT FOREIGN CURRENCY LIABILITIES OF THE MONETARY SECTOR AND OF $28.8 BN TO $547.5 BN IN THE SPOT FOREIGN CURRENCY ASSETS. THUS, THE SECTOR AS A WHOLE HAD NET SPOT FOREIGN CURRENCY LIABILITIES OF $15.1 BN AT THE END OF OCTOBER, COMPARED WITH $13.4 BN AT THE END OF SEPTEMBER. WITHIN THE OCTOBER FIGURE, BANKS HAD NET LIABILITIES OF $7.3 BN AND DEPOSIT-TAKING COMPANIES HAD NET LIABILITIES OF $7.8 BN.

SO FAR THIS YEAR, SPOT FOREIGN CURRENCY LIABILITIES OF THE MONETARY SECTOR HAVE INCREASED RAPIDLY. THIS LARGELY REFLECTED THE SUBSTANTIAL INFLOW OF FOREIGN CURRENCY DEPOSITS INTO THE MONETARY SECTOR, BROUGHT ABOUT BY THE EXEMPTION OF SUCH DEPOSITS FROM INTEREST WITHHOLDING TAX SINCE FEBRUARY 25. BUT SPOT FOREIGN CURRENCY ASSETS OF THE MONETARY SECTOR HAVE NOT INCREASED AS RAPIDLY. AS A RESULT THE NET SPOT FOREIGN CURRENCY POSITION OF THE MONETARY SECTOR SHIFTED FROM NET ASSETS OF $4.4 BN AT THE END OF FEBRUARY TO NET LIABILITIES OF $15.1 BN AT THE END OF OCTOBER.

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