TNAG-2977-FCO40-1469-Economic-policy-in-Hong-Kong-1982 — Page 110

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

1.10

slowing down. The

on foreign currency

During the first half of the year, domestic interest rates remained stable in comparison to the wide fluctuations

experienced in the second half of 1981. The new series of

monetary statistics, although influenced by a number of special factors (paragraph 3.2), suggest that the underlying

growth rates of money and credit were

removal of the interest withholding tax

deposits as from 25th February 1982 stimulated a large

increase in foreign currency deposits (largely in US

dollars) (paragraph 3.3). There was also a marked shift of

deposits from deposit-taking companies to banks as banks

started to compete for short-term large deposits (paragraph 3.4). Loans and advances for use in Hong Kong expanded by 18% during the first half of 1982, compared with 26% in the first

half of 1981.

1.11

The exchange value of the Hong Kong dollar, measured by the trade-weighted exchange rate index, increased in the

first half. But in terms of the US dollar, there was a slight depreciation (paragraph 3.14).

4

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