XN000022-1995-03-30 — Page 8

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The use of a month as the base period is more in line with international practice. Like the existing base period, the new base period is chosen because it is still close to October 17, 1983, the date on which the Hong Kong dollar (HKD) started its link with the US dollar.

The above changes will improve the accuracy and representativeness of EERI in measuring the relative strength of the HKD.

Trade values are used as weights for the compilation of the indices. Based on import values, export values and total trade values, three separate series of EERI, viz. import- weighted, export-weighted and trade-weighted, are compiled.

Table 1 presents the old and the new series of EERI on an annual basis from 1991 to 1994, and on a monthly basis from January 1991 to February 1995. Table 2 compares the import weights, export weights and trade weights attached to each selected currency for the old and the new series of EERI.

The new series of EERI indicates that, between February 1991 and February this year, the HKD appreciated by about 14.5% against the 17 selected currencies.

This differs from the change observed in the old series, which indicates an appreciation of about 11.5% against the 15 selected currencies. The difference is partly attributable to the increase in the relative importance of trade with China and the depreciation of the Chinese renminbi.

For the new series of EERI, daily indices will be available back to January 2, 1994, monthly indices back to 1981 and annual indices back to 1975.

The new EERI will be released on a daily basis by the Census and Statistics Department starting from April 1,

A feature article giving more details of the new series of EERI will appear in the April issue of the Hong Kong Monthly Digest of Statistics to be published by the Census and Statistics Department at the end of next month.

Enquiries on EERI may be directed to the Census and Statistics Department on tel 2582 4914.