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Author Archives: hksar gov

Exchange Fund Abridged Balance Sheet and Currency Board Account

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) announced today (August 31) that the total assets of the Exchange Fund amounted to HK$4,144.4 billion as at July 31, 2018, HK$43.6 billion higher than that at the end of June 2018. Foreign currency assets increased by HK$15.4 billion and Hong Kong dollar assets increased by HK$28.2 billion.

     The rise in foreign currency assets was mainly due to an increase in unsettled purchases of securities and mark-to-market gains on foreign currency portfolios, which were partly offset by the redemption of Certificates of Indebtedness. The rise in Hong Kong dollar assets was mainly due to an increase in Exchange Fund Bills and Notes issued but not yet settled, which was partly offset by the withdrawals of placements by Fiscal Reserves.
 
     The Currency Board Account shows that the Monetary Base at the end of July 2018 was HK$1,645.1 billion, decreased by HK$7.0 billion, or 0.4 per cent, from the end of June 2018. The decline was mainly due to the decrease in the outstanding amount of Certificates of Indebtedness.
 
     The amount of Backing Assets decreased by HK$6.3 billion, or 0.3 per cent, to HK$1,796.1 billion. The decrease was mainly attributable to the redemption of Certificates of Indebtedness, which was partly offset by income from investments. The backing ratio increased from 109.10 per cent at the end of June 2018 to 109.18 per cent at the end of July 2018.
 
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     At present, four press releases relating to the Exchange Fund’s data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund’s Special Data Dissemination Standard (SDDS). The fourth press release, on the Exchange Fund’s Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA’s policy of maintaining a high level of transparency. For the month of August 2018, the scheduled dates for issuing the press releases are as follows:
 

August 7
(Issued)		 SDDS International Reserves
(Hong Kong’s Latest Foreign Currency Reserve Assets Figures)
 
August 14
 (Issued)		 SDDS Analytical Accounts of the Central Bank
(Analytical Accounts of the Exchange Fund)
 
August 31
 		 SDDS Template on International Reserves and Foreign Currency Liquidity
 
August 31
 		 Exchange Fund Abridged Balance Sheet and Currency Board Account
 
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East Asia

Thirteen immigration offenders arrested

       The Immigration Department (ImmD) mounted a territory-wide anti-illegal worker operation codenamed “Twilight” from August 29 to 30. A total of 10 illegal workers and three suspected employers were arrested.
           
       During the operation, ImmD Task Force officers raided 61 target locations including bakery shops, a restaurant, a salon, village houses, street stalls and a temporary bamboo stage under construction. A total of 10 illegal workers and three employers were arrested. The illegal workers comprised eight men and two women, aged 21 to 58. Among them, a man and a woman were holders of recognisance forms, which prohibit them from taking any employment. Furthermore, a woman was suspected of using and being in possession of forged Hong Kong identity card. Meanwhile, three men, aged 54 to 72, were suspected of employing the illegal workers.
           
       “Any person who contravenes a condition of stay in force in respect of him shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years’ imprisonment. Aiders and abettors are also liable to prosecution and penalties,” an ImmD spokesman said.
 
      The spokesman warned that, as stipulated in section 38AA of the Immigration Ordinance, illegal immigrants or people who are the subject of a removal order or a deportation order are prohibited from taking any employment, whether paid or unpaid, or establishing or joining in any business. Offenders are liable upon conviction to a maximum fine of $50,000 and up to three years’ imprisonment. The Court of Appeal has issued a guideline ruling that a sentence of 15 months’ imprisonment should be applied in such cases. It is an offence to use or possess a forged Hong Kong identity card or a Hong Kong identity card related to another person. Offenders are liable to prosecution and a maximum penalty of a $100,000 fine and up to 10 years’ imprisonment.
 
       The spokesman reiterated that it is a serious offence to employ people who are not lawfully employable. The maximum penalty is imprisonment for three years and a fine of $350,000. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence. According to the court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee’s identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker’s valid travel document if the job seeker does not have a Hong Kong permanent identity card. The maximum penalty for failing to inspect such a document is imprisonment for one year and a fine of $150,000.
 
       Under the existing mechanism, the ImmD will, as a standard procedure, conduct initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) victims. When any TIP indicator is revealed in the initial screening, the officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP elements, such as threat and coercion in the recruitment phase and the nature of exploitation. Identified TIP victims will be provided with various forms of support and assistance, including urgent interference, medical services, counselling, shelter, temporary accommodation and other supporting services. The ImmD calls on TIP victims to report crimes to the relevant departments.
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East Asia