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Commitment to defending currency link unshaken
The continued strength of the Exchange Fund gives added credibility to the Government's long-standing commitment to defend the currency and its link with the US dollar, the Financial Secretary, the Hon Sir Hamish Macleod, said today (Wednesday).
The commitment is unshaken by the fact that a couple of Legislative Council members questioned its usefulness, he said when concluding the debate on the second reading of the Appropriation Bill 1995.
This fact should be assessed against the background that the link has wide support both in this Chamber and in the wider community, and, helpfully, that China. too has made clear its support for the link, Sir Hamish added.
Although the figures are as yet unaudited, at the end of 1994, the Exchange Fund stood at $408 billion, an increase of 17% over the previous year.
Sir Hamish said: 1994 was a very difficult year for fixed income markets, with every major market showing negative returns.
Despite this, the Fund's accumulated earnings rose by just over $1 billion to $129 billion.
Sir Hamish also announced the decision to publish the accounts of the Exchange Fund every six months in order to further increase its transparency.
"This more frequent disclosure of the Fund's position will also bring Hong Kong more into line with international practice," he said.
End/Wednesday, March 29, 1995
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