Oct 31 (Reuters) - Assets at the Exchange Fund, which is used to back the Hong Kong dollar, totalled HK$3,902.5 billion ($500.25 billion) at the end of September, the Hong Kong Monetary Authority (HKMA) said on Tuesday.
It was HK$9.9 billion lower than the total at the end of August, with foreign currency assets increasing by HK$8.5 billion while Hong Kong dollar assets down by HK$18.4 billion, the city’s de facto central bank said in a statement.
The HKMA said the rise in foreign currency assets was mainly due to the issuance of certificates of indebtedness and the purchase of foreign currencies with Hong Kong dollars.
This was partly offset by mark-to-market losses on foreign currency portfolios and a decrease in unsettled purchases of securities, it said.
The decline in Hong Kong dollar assets was mainly due to sale of Hong Kong dollars for foreign currencies and withdrawals of placements by fiscal reserves, it added.
($1 = 7.8011 Hong Kong dollars)
Reporting by Twinnie Siu in HONG KONG; ; Editing by Biju Dwarakanath