XN000022-1986-04-07 — Page 4

MONDAY, APRIL 7,′′ 1986

DEPOSITS

IN FEBRUARY, HONG KONG DOLLAR DEMAND DEPOSITS FELL BY FIVE PER CENT - AS THEY DID IN 1985 - WHILE SAVINGS AND TIME DEPOSITS WITH BANKS INCREASED BY 0.2 PER CENT AND 1.6 PER CENT RESPECTIVELY, LEAVING TOTAL HONG KONG DOLLAR DEPOSITS LITTLE CHANGED. IN THE THREE MONTHS TO FEBRUARY HONG KONG DOLLAR DEPOSITS GREW BY 4.2 PER CENT AND OVER THE 12 MONTHS THE GROWTH RATE WAS 11.9 PER CENT.

AS THE HONG FOREIGN CURRENCY DEPOSITS GREW BY 4.2 PER CENT. KONG DOLLAR DEPRECIATED CONSIDERABLY AGAINST THE JAPANESE AND MAJOR EUROPEAN CURRENCIES DURING THE MONTH OF FEBRUARY, PART OF THE INCREASE IN FOREIGN CURRENCY DEPOSITS REFLECTED THE RISE IN VALUE OF THESE DEPOSITS IN HONG KONG DOLLAR TERMS.

THE EXCHANGE VALUE OF THE DEUTSCHEMARK AND THE YEN AGAINST THE HONG KONG DOLLAR, FOR EXAMPLE, INCREASED BY MORE THAN SIX PER CENT DURING THE MONTH OF FEBRUARY.

FOREIGN CURRENCY SWAP DEPOSITS ALSO INCREASED, BY 3.2 PER CENT, AFTER AN INCREASE OF 4.6 PER CENT IN JANUARY. ADJUSTED TO INCLUDE THESE DEPOSITS, HONG KONG DOLLAR DEPOSITS GREW BY 0.3 PER CENT AND BY 4.8 PER CENT IN THE THREE MONTHS TO FEBRUARY- ADJUSTED FOREIGN CURRENCY DEPOSITS GREW BY 4.3 PER CENT IN FEBRUARY, THEIR GROWTH IN THE THREE MONTHS TO FEBRUARY BEING 11.4 PER CENT.

DEPOSITS (ALL CURRENCIES) WITH BANKS INCREASED BY 2.4 PER CENT IN FEBRUARY, FOLLOWING AN INCREASE OF 3.3 PER CENT IN JANUARY- TOTAL DEPOSITS WITH DEPOSIT-TAKING COMPANIES GREW BY 1.2 PER CENT AFTER HAVING INCREASED BY 3.5 PER CENT IN JANUARY,

IN THE THREE MONTHS TO FEBRUARY, THE GROWTH OF TOTAL DEPOSITS WITH BANKS WAS 8.1 PER CENT, WHILE THAT OF DEPOSITS WITH DEPOSIT-TAKING COMPANIES WAS SEVEN PER CENT OVER THE 12 MONTHS, THE RESPECTIVE GROWTH RATES WERE 27.8 PER CENT AND 22.6 PER CENT.

HONG KONG DOLLAR MONEY SUPPLY

HONG KONG DOLLAR MONEY SUPPLY M1 FELL BY 2.4 PER CENT AFTER AN INCREASE OF 4.6 PER CENT IN JANUARY. BOTH THE INCREASE IN JANUARY AND FALLBACK IN FEBRUARY WOULD SEEM TO BE LARGELY ASSOCIATED WITH THE DEMAND FOR NOTES AND COINS AROUND THE LUNAR NEW YEAR.

HK$M2 AND HK$M3 BOTH ROSE BY 0.2 PER CENT AFTER AN INCREASE OF 3.3 PER CENT IN JANUARY. IN THE THREE MONTHS TO FEBRUARY HK$M1 GREW BY 3.4 PER CENT WHILE HK$M2 AND HK$M3 BOTH BY FIVE PER CENT; OVER THE 12 MONTHS, THE CORRESPONDING INCREASES WERE 11.4 PER CENT, 13 PER CENT AND 13.1 PER CENT.

/AFTER ADJUSTING