Exchange Fund's total assets plunged $14.2b

Here's what to blame.

In a report, the Monetary Authority announced that the Exchange Fund's total assets amounted to $2.9206 trillion at the end of October, $14.2 billion lower than September’s figure.

Foreign currency assets increased $21.1 billion, while Hong Kong dollar assets decreased $35.3 billion.

The Monetary Base at the end of October was $1.2439 trillion, down $1.2 billion from a month earlier, due to a decrease in the outstanding amount of Certificates of Indebtedness.

The amount of Backing Assets fell $900 million to $1.3389 trillion, due to the reduction in assets connected with the redemption of Certificates of Indebtedness. The backing ratio increased to 107.63% at the end of October from 107.60% a month earlier.