At the end of February, the total assets of the Exchange Fund were $960.7 billion, $14.9 billion lower than at the end of January.

The Monetary Authority said both foreign-currency assets and Hong Kong-dollar assets decreased by $14.2 billion and $0.7 billion respectively.

The decrease in foreign currency assets was mainly due to a decrease in Certificates of Indebtedness and the sale of foreign currencies for Hong Kong dollars.

The decrease in Hong Kong dollar assets was mainly due to fiscal drawdowns and a decrease in bank borrowings which were partly offset by the purchase of Hong Kong dollars from foreign currencies.

Figures in the Currency Board Account show that the monetary base at the end of February was $251.9 billion, a decrease of $13.4 billion, or 5.1%, from the end of January.

The decrease was mainly due to a drop in Certificates of Indebtedness of $13.3 billion as the seasonal demand for cash unwound after the Lunar New Year.

The backing assets decreased by $13.2 billion, or 4.5%, from $295.1 billion to $281.9 billion. The decline was mainly driven by the corresponding decrease in Certificates of Indebtedness in the monetary base.