The Exchange Fund's total assets dropped to $4.1896 trillion at the end of February, down $3 billion compared to the previous month, the Monetary Authority announced today.

Foreign currency assets increased $9.8 billion while Hong Kong dollar assets dropped $12.8 billion.

The Monetary Base was $1.7175 trillion, up 1% on the previous month due to an increase in the outstanding amount of Certificates of Indebtedness.

The amount of Backing Assets rose by $18 billion to $1.8545 trillion due to the issuance of Certificates of Indebtedness and income from investments.

The backing ratio decreased from 108% to 107.98%.