Foreign currency reserves balloon to US$1.2b

This is over 8x the currency in circulation.

Hong Kong’s official foreign currency reserve assets amounted to US$317.3 billion at the end of December, up US$12.1b on November, the Monetary Authority announced.

Including unsettled forward contracts, foreign currency reserve assets at the end of December stood at US$317.3 billion, compared with US$306.8 billion at the end of November.

The figure represents more than eight times the currency in circulation or about 55% of Hong Kong dollar M3.