The Hong Kong Monetary Authority (HKMA) announce on Tuesday to offer additional Exchange Fund Bills totaling 40 billion Hong Kong dollars (5.12 billion U. S. dollars).
The additional supply of short-dated Exchange Fund paper is designed to meet the strong demand for Exchange Fund paper by banks for liquidity management.
Specifically, the three-month Exchange Fund Bills to be offered on Sept. 26 and Oct. 3, Oct. 10, Oct. 17 and Oct. 24 will each be increased by 8 billion Hong Kong dollars respectively.
Interbank liquidity is expected to remain abundant after the issuance of additional Exchange Fund Bills, which is not expected to have a significant impact on liquidity conditions and interest rates.
