The total assets of the Exchange Fund amounted to $2.2321 trillion at the end of July, $4.2 billion higher than that of June, the Monetary Authority said today.

Foreign currency assets fell by $1.3 billion while Hong Kong dollar assets grew by $5.5 billion.

The decline in foreign currency assets was mainly due to a decrease in unsettled purchases of securities, which was partly offset by valuation gains on foreign currency investments.

The rise in Hong Kong dollar assets was mainly due to valuation gains on Hong Kong equities.

The Currency Board Account showed the Monetary Base at the end of July was $1.0249 trillion, up $1.3 billion, or 0.1% on the end of June. The rise was mainly due to increases in Certificates of Indebtedness and market value of Exchange Fund Bills and Notes outstanding.

The Backing Assets dropped $1.4 billion, or 0.1%, to $1.1062 trillion, mainly attributable to exchange losses triggered by a stronger Hong Kong dollar which was partly offset by interest from investments and the issuance of Certificates of Indebtedness.