XN000022-1984-05-04 — Page 6

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FRIDAY, MAY 4, 1984

MONETARY STATISTICS FOR MARCH

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HONG KONG DOLLAR 'DEPOSITS WITH THE MONETARY SECTOR FELL MARGINALLY IN MARCH, FOLLOWING SUBSTANTIAL GROWTH IN THE PREVIOUS FIVE MONTHS, ACCORDING TO STATISTICS RELEASED TODAY.

BY CONTRAST, FOREIGN CURRENCY DEPOSITS INCREASED SUBSTANTIALLY.

THE SWITCH WAS PROBABLY ATTRIBUTABLE TO THE SUBSIDING OF THE SPECULATIVE EXPECTATION OF AN IMMINENT ALTERATION OF THE PRESENT LINKED EXCHANGED RATE OF THE HONG KONG DOLLAR WITH THE US DOLLAR.

REFLECTING THIS CHANGE, HONG KONG DOLLAR MONEY SUPPLY FELL (ON THE BROADER DEFINITIONS, HK$M2 AND HK$M3) BUT THE TOTAL MONEY SUPPLY ROSE.

LOANS TO FINANCE VISIBLE TRADE OF HONG KONG PICKED UP SOMEWHAT DURING THE MONTH BUT OTHER LOANS FOR USE IN HONG KONG CONTINUED TO RECORD ONLY MARGINAL INCREASES.

TABLE 1 SETS OUT SUMMARY FIGURES FOR MARCH 1984 AND COMPARISONS WITH EARLIER MONTHS. TABLE 2 SETS OUT SOME FIGURES FROM THE QUARTERLY ANALYSIS OF LOANS AND ADVANCES FOR USE IN HONG KONG BY SECTOR.

DEPOSITS

HONG KONG DOLLAR DEPOSITS FELL SLIGHTLY, BY 0.7 PER CENT, AFTER A CUMULATIVE INCREASE IN THE PREVIOUS FIVE MONTHS OF $38.1 BILLION OR 28.5 PER CENT. IN THE THREE MONTHS TO MARCH, HONG KONG DOLLAR DEPOSITS INCREASED BY 11.1 PER CENT AND OVER THE 12 MONTHS THE INCREASE WAS 27.7 PER CENT.

FOREIGN CURRENCY DEPOSITS ROSE SHARPLY BY 5.0 PER CENT AFTER A DECLINE OF 1.2 PER CENT IN FEBRUARY. IN THE THREE MONTHS TO MARCH, THE INCREASE WAS 4.7 PER CENT AND OVER THE TWELVE MONTHS THE INCREASE WAS 32.8 PER CENT.

HONG KONG DOLLAR MONEY SUPPLY

THE NARROWEST DEFINITION OF MONEY SUPPLY, HK$M1, GREW BY 4.6 PER CENT IN MARCH, AFTER A FALL OF 8.2 PER CENT IN FEBRUARY.

ON THE BROADER DEFINITIONS, HK$M2 AND HK$M3 DECLINED BY 0.5 PER CENT AND 0.7 PER CENT RESPECTIVELY. THE IR CORRESPONDING INCREASES IN FEBRUARY WERE 5.6 PER CENT AND 4.3 PER CENT.

IN THE THREE MONTHS TO MARCH, HK$M1 AND HK$M2 BOTH INCREASED BY 13.1 PER CENT WHILE HK$M3 INCREASED BY 10.6 PER CENT. OVER THE TWELVE MONTHS, THE CORRESPONDING GROWTH RATES WERE 18.6 PER CENT, 28.5 PER CENT AND 24.8 PER CENT.

TOTAL MONEY