XN000022-1995-11-02 — Page 5

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This was followed by the issue of 3-Year Notes in October 1993 and 5-Year Notes in September 1994. So far 24 issues of Exchange Fund Notes have been issued, of which 22 issues, valued at $13.2 billion, are outstanding.

End/Thursday, November 2, 1995

HK's foreign exchange reserves to be published quarterly

The Financial Secretary, Mr Donald Tsang, announced today (Thursday) that the Government has decided to publish the size of Hong Kong's foreign exchange reserves every quarter instead of every six months.

Mr Tsang told the Seminar on Global Payment Systems organised by the Hong Kong Monetary Authority (HKMA) today that he has decided, in consultation with the Exchange Fund Advisory Committee, to move to greater transparency and openness regarding data on the Exchange Fund, which is managed by HKMA.

Beginning with the third quarter, figures for the foreign exchange reserves in the Exchange Fund will be released on a quarterly basis.

"The Mexican crisis has raised concerns about the timeliness and consistency of international data, especially data on the balance of payments and external reserves... the world today feels that full disclosure and transparency is preferred, and as an international financial centre and a good global citizen, Hong Kong will undertake to provide the world with the full picture of our success story," said Mr. Tsang.

In the past three years, HKMA has taken important steps toward greater accountability and transparency of the Exchange Fund.

In 1992, the size of the Exchange Fund was disclosed for the first time, and the balance sheet of the Fund had since been published on an annual basis.