XN000022-1996-03-26 — Page 4

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He stressed that HKMA had taken its usual prudent management of the Fund with the majority of the assets invested in fixed income instruments.

The outlook for 1996 was however less certain, according to Mr Yam.

"There are mixed forecasts for interest rates level this year while a stronger US currency will affect our non-US dollar foreign assets," he explained.

"Therefore, while we will still expect to be able to add further to our Exchange Fund in 1996, the rate of return will probably not be able to match that of 1995," he added.