XN000022-1989-07-19 — Page 40

WEDNESDAY, JULY 19, 1989

38

FISCAL RESERVE STANDS AT $63.9 BILLION

WAS

THE ACCUMULATED FISCAL RESERVE AT THE END OF MAY THIS YEAR $63.9 BILLION, THE LEGISLATIVE COUNCIL WAS INFORMED TODAY (WEDNESDAY),

CATER

KONG 'TO OF GOVERNMENT DAVID NENDICK,

"SOME OF THIS IS PLACED ON DEPOSIT WITH BANKS IN HONG FOR THE MORE IMMEDIATE CASH REQUIREMENTS EXPENDITURE," THE ACTING FINANCIAL SECRETARY, THE HON SAID IN A WRITTEN REPLY TO A QUESTION FROM THE HON MIRIAM LAU,

BEEN TRANSFERRED TO THE

"BUT THE BULK, $52.7 BILLION, HAS EXCHANGE FUND IN RETURN FOR DEBT CERTIFICATES,

"

THESE DEBT CERTIFICATES WERE INTEREST BEARING AND THE RATE PAYABLE BY THE EXCHANGE FUND TO

INTEREST THE GENERAL THE LEVEL OF INTEREST RATES IN THE WHOLESALE MONEY MARKET, HE SAID.

REVENUE REFLECTED

**THE EXCHANGE FUND CONFINES ITS INVESTMENTS MARKETABLE FINANCIAL INSTRUMENTS AND BANK DEPOSITS DENOMINATED IN

TO LOW RISK MAJOR INTERNATIONAL CURRENCIES," MR NENDICK CONTINUED.

DENOMINATED

DEBT

SHAREHOLDINGS

THE

DOLLAR

"IT ALSO HAS A MODEST PORTFOLIO OF

HONG KONG. INCLUDING TELECOMMUNICATIONS, THE CROSS HARBOUR TUNNEL AND HACTL (HONG KONG

IN HONG CARGO TERMINALS LTD).

KONG

AIR

EXCHANGE OR INTEREST EXCHANGE FUND AND NOT THE

MR NENDICK POINTED OUT THAT ANY FOREIGN RATE RISKS INVOLVED WERE BORNE GENERAL REVENUE.

BY THE

"IF THE INVESTMENTS OF THE EXCHANGE FUND ATTRACT LOWER RATE OF RETURN THAN

A HIGHER OR THE INTEREST RATE REVENUE, THE PROFIT OR LOSS IS FOR THE ACCOUNT OF THE EXCHANGE

PAID ΤΟ THE GENERAL HE SAID,

FUND,

H

BEEN IN PLACE FOR A RATE OF RETURN GENERAL REVENUE, AND INVESTMENT RISKS THAT

EXPLAINING THE ARRANGEMENT, WHICH HAD NUMBER OF YEARS, MR NENDICK SAID IT ENSURED A STABLE ON THE FISCAL RESERVE FOR THE BENEFIT OF THE RELIEVED IT OF ANY FOREIGN EXCHANGE AND OTHER MIGHT OTHERWISE BE INCURRED.

"IN EFFECT, THE BULK OF THE FISCAL RESERVE IS PLACED ON DEPOSIT WITH THE EXCHANGE FUND, EARNING A MARKET RATE OF INTEREST," HE SAID.

"AT THE SAME TIME, THIS PUTS ADDITIONAL DISPOSAL OF THE EXCHANGE FUND TO BETTER ENABLE IT

RESOURCES AT THE FUNCTION, AS NECESSARY, OF MAINTAINING THE STABILITY OF THE HONG

TO CARRY OUT ITS DOLLAR. M

KONG

NENDICK SAID THE

ON INFORMING THE PUBLIC OF THE ACCOUNTS, MR AMOUNT TRANSFERRED TO THE EXCHANGE FUND WAS PUBLISHED.

THE MONTHLY

+

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