Before Linked Exchange Rate System (LERS) came into its official existence in 1983, the government of Hong Kong has transferred its accumulated government surplus, currency-issuing funds, and land funds to foreign currency reserve in 1976 in order to provide full monetary support to its monetary base. According to Hong Kong Monetary Authority (HKMA), all foreign reserve can be used to support LERS.
Hong Kong's monetary base includes:
- Certificates of Indebtedness, which provide full backing to the banknotes issued by note-issuing banks
- Government-issued Notes and Coins in circulation
- Aggregate Balance that is the sum of banks’ clearing account balances kept with the HKMA
- Exchange Fund Bills and Notes issued by the HKMA on behalf of the government for the account of the exchange fund.
HK Total FC Reserve Assets2021-09494,942.00m
HK Total FC Reserve Assets (Monthly Change, R)2021-09494,942.00m