XN000022-1995-11-24 — Page 18

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Excluding forward transactions, the amount of foreign currency assets in the Exchange Fund fell by 3.5% or US$1.9 billion (HK$14.6 billion) over the three months. The fall largely reflects the effect of drawdowns of fiscal reserves over the period totalling HK$25.2 billion.

Commenting on the figures, the Chief Executive of HKMA, Mr Joseph Yam, said: "In accordance with a recent decision of the Financial Secretary, we are publishing quarterly figures on the foreign currency assets of the Exchange Fund for the first time.

"This brings us closer to international practice and underscores our commitment to greater transparency."

Quarterly figures from December 1993 were also published at the same time.

To assist in the proper interpretation of the quarterly figures, which would inevitably show greater fluctuations, HKMA has taken the opportunity also to disclose forward transactions that have not yet been settled.

As in previous years, said Mr Yam, the third quarter included three "dry" months for the general revenue in which there were the normal large drawdowns of fiscal reserves from the Exchange Fund to meet seasonal deficits.

After allowing for the amount withdrawn, at HK$25.2 billion, which was larger than the fall in the foreign currency assets of the Exchange Fund, HKMA had in the third quarter continued to achieve a positive return on the Fund.

Mr Yam had earlier indicated that HKMA would adopt a conservative strategy for the second half of the year with the aim of protecting the substantial gains that had been achieved during the first half.