China News Service, Hong Kong, December 13th (Reporter Liu Chenyao) The Hong Kong Monetary Authority (HKMA) announced on the 13th that it will increase the issuance of Exchange Fund bills by an appropriate amount to deal with banks in the context of abundant liquidity in the banking system. Waiting for the continued demand for bills.
It is reported that the Hong Kong Monetary Authority plans to hold eight events on January 4, January 11, January 18, January 25, January 31, February 8, February 15, and February 22, 2022. In the second regular tender, an additional 5 billion yuan (HK$, the same below) of Exchange Fund bills dated 91 was issued each time.
If all the eight planned additional issuances are implemented, the issuance of bills will increase by a total of 40 billion yuan.
The HKMA stated that it will continue to monitor market conditions and reserve the possibility of adjustments or not all of the eight additional issuances mentioned above.
The reporter learned that the Hong Kong Monetary Authority announced in August 2021 that an additional 40 billion yuan of Exchange Fund bills were issued. Similar to this plan, the additional issuance will be divided into eight times.
The reporter inquired about the Monetary Authority on the 13th and learned that all of the 40 billion exchange fund bills announced in August had all been successfully issued.
The HKMA pointed out that the arrangement announced on the 13th to increase the supply of Exchange Fund bills is in line with the operating principles of the currency board system.
The issuance of additional Exchange Fund bills is only a transfer between the components of the monetary base, that is, the transfer of aggregate balances from the banking system to Exchange Fund bills and bonds. The aggregate balance will be correspondingly reduced in response to the additional issuance of Exchange Fund bills, and the monetary base will still be fully provided by foreign exchange reserves. support.