TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 98

CONFIDENTIAL

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One dollar notes issued by the Government under section 2 of the

repealed Dollar Currency Notes Ordinance are excluded. Such notes

were last issued in 1961. At 31 December 1987 Government one dollar notes with a face value of $7,309,687 were outstanding. Provision is made in the Government's expenditure estimates for the redemption of these notes and they are recorded as a contingent liability in the Government's Statement of Assets and Liabilities, which is

published with the Annual Report of the Director of Accounting

Services.

TABLE 4

% increase over previous year

1985

1986

1987

Percentage increases in the value of notes in circulation in each of the last three years

26.11

14.81

30.54

Percentage increases in the number of notes in circulation in each of the last three years

12.63

15.37

12.08

Notes in circulation reached a peak of $27,305,568,450 on 28 January 1987 (Chinese New Year fell on 29 January 1987) compared with a peak of $23,125,568,450 in 1986.

CONFIDENTIAL