HKMA reports decrease in Exchange Fund foreign assets

The Hong Kong Monetary Authority (HKMA) today released the key analytical accounts of the Exchange Fund for December 2025. Foreign assets decreased by HK$12.5 billion during the month.

Exchange Fund's external assets decline

The Hong Kong Monetary Authority (HKMA) today announced a decrease in the foreign assets of the Exchange Fund, which constitute the external assets managed by the authority.

During December 2025, these crucial holdings saw a reduction of HK$12.5 billion, bringing their total value to HK$3,525.5 billion.

This monthly adjustment reflects the dynamic nature of Hong Kong's monetary operations and its position as a major international financial center.

The Exchange Fund plays a pivotal role in maintaining Hong Kong's monetary and financial stability, ensuring the backing of the currency, and managing the official reserves.

The regular publication of these analytical accounts is a cornerstone of the HKMA's commitment to transparency, aligning with the stringent requirements of the International Monetary Fund's Special Data Dissemination Standard (SDDS).

This adherence ensures that the data is presented in a standardized and internationally comparable format, facilitating global financial analysis and oversight.

Key components of the Monetary Base

The report also provided figures for other key components of the Exchange Fund, offering a broader view of Hong Kong's monetary landscape.

The Monetary Base, a fundamental measure of the money supply, amounted to HK$2,040.0 billion.

This aggregate includes Certificates of Indebtedness, government-issued currency notes and coins in circulation, the balance of the banking system, and Exchange Fund Bills and Notes.

These components collectively underpin the stability of the Hong Kong dollar.

Furthermore, claims on the private sector in Hong Kong were recorded at HK$388.1 billion, indicating the level of domestic credit.

Foreign liabilities, representing the fund's external obligations, totaled HK$52.3 billion, completing the snapshot of the Exchange Fund's analytical accounts for December 2025.

Consistent transparency builds confidence

The HKMA's consistent and timely release of these analytical accounts is crucial for fostering market confidence and ensuring accountability.

Adherence to the IMF's SDDS framework provides a robust and internationally recognized standard for central bank data dissemination.

This commitment to transparency allows analysts and investors to gain a clear and reliable understanding of Hong Kong's monetary and financial health, vital for stability in a dynamic global economy.