TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 80

1.9

Movements in the exchange value of the Hong Kong

dollar during the third quarter were out of line with the

current strength of the economy.

After remaining

relatively stable in July, the Hong Kong dollar weakened sharply in August and September (paragraph 3.11). The weakness largely reflected the nervous political sentiment and the worldwide strength of the US dollar.

1.10

The

supply money

figures continued to be distorted by the existence of swap deposits and by the

valuation effect of the weaker Hong Kong dollar, thus making interpretation difficult (paragraph 3.3). Total

loans and advances extended

extended by banks and deposit-taking

companies increased slightly

(paragraph 3.6).

during the third

quarter

4

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