HK dollar deposits on the rise again
HONG KONG dollar deposits reversed their declines of early this year to rise 2.1 per cent in February, according to figures from the Hong Kong Monetary Authority (HKMA).
It said all types of Hong Kong dollar deposits rose in February.
Hong Kong dollar demand deposits rose 4.8 per cent and savings deposits rose 0.6 per cent, but growth of Hong Kong dollar time deposits eased from January's 2.4 per cent to 2.2 per cent in February, the authority said.
The exception to the growth overall was the Hong Kong dollar money supply (M1), which eased under the traditional post-Lunar New Year effect, it said.
Foreign currency swap deposits continued to fall sharply, reflecting the second stage of deregulation of the interest rate cap on Hong Kong dollar time deposits which took effect on January 3.
Hong Kong dollar demand deposits stood at $97.67 billion on February 28, up 4.8 per cent on January, but down 11.4 per cent over the year.
The HKMA said January Hong Kong dollar demand deposits were almost 23 per cent lower over 12 months.
'The rise in HK dollar demand deposits and saving deposits, which in aggregate amounted to $6.1 billion, will have reflected the fall of $12.4 billion in cash held by the public, which largely reversed the rise of $16.2 billion in this item in January,' the authority said.
Hong Kong dollar time deposits, adjusted to include foreign currency swap deposits, stood at $670.78 billion, up 37 per cent year-on-year.
Foreign currency deposits rebounded from a 1.4 per cent decline in January to an increase of 3.7 in February, the HKMA said.
It said the rise was mainly in US dollar deposits, which came to $512.99 billion in February, up 6.2 per cent on January, and 21.4 per cent over the year.
Total outstanding loans and advances approved by authorised institutions expanded by 2.1 per cent in February, from 0.9 per cent in January, it said.
Growth in Hong Kong dollar loans moderated from 0.8 per cent in January to 0.7 per cent in February, the HKMA said.
