HKMA Releases August 2026 Exchange Fund Analytical Accounts Under IMF SDDS Standard

Key Takeaways

• The HKMA published the Exchange Fund's key analytical accounts for end-August 2026, showing foreign assets down HKD $41.8 Billion to HKD $3,652.7 Billion and a Monetary Base of HKD $2,080.2 Billion.
• This is a routine data release under the IMF's Special Data Dissemination Standard (SDDS), with no new compliance obligations.
• It does give compliance, treasury, and risk teams useful indicators of Hong Kong's monetary and liquidity conditions.

Deep Dive

The HKMA published the Exchange Fund's key analytical accounts for end-August 2026, showing foreign assets down HKD $41.8 Billion to HKD $3,652.7 Billion and a Monetary Base of HKD $2,080.2 Billion. This is a routine data release under the IMF's Special Data Dissemination Standard (SDDS), with no new compliance obligations. It does give compliance, treasury, and risk teams useful indicators of Hong Kong's monetary and liquidity conditions.

The key figures for end-August 2026 are as follows. Foreign assets, which represent the Exchange Fund's external assets, fell by HKD $41.8 Billion during the month to HKD $3,652.7 Billion. The Monetary Base, which comprises Certificates of Indebtedness, government-issued currency notes and coins in circulation, the banking system balance, and Exchange Fund Bills and Notes issued, stood at HKD $2,080.2 Billion. Claims on the private sector in Hong Kong were HKD $403.1 Billion, and foreign liabilities were HKD $140.3 Billion. The release gives no explanation for the decline in foreign assets, so teams should avoid over-interpreting a single month's movement.

The annex sets out the HKMA's September 2026 publication schedule for Exchange Fund data. The SDDS International Reserves release was issued on 7 September. The SDDS Analytical Accounts release is dated 14 September, which is this publication. On 30 September, the HKMA will issue both the SDDS Template on International Reserves and Foreign Currency Liquidity and the Exchange Fund Abridged Balance Sheet and Currency Board Account. The last of these is published under the HKMA's transparency policy rather than SDDS. Teams that track these releases should calendar the 30 September dates.

Recommended actions: (1) Add the figures to monitoring dashboards used for liquidity, interest rate, and Hong Kong dollar peg-related risk assessments. (2) Consider the data when updating stress testing scenarios and ICAAP/ILAAP assumptions where relevant, particularly the banking system balance and Exchange Fund Bills and Notes issuance. (3) Brief treasury and market risk stakeholders after the 30 September releases, which give a fuller view of reserves, foreign currency liquidity, and Currency Board backing. (4) Confirm that internal regulatory calendars reflect the HKMA's data release schedule.

Risk implications are low and indirect. A monthly decline in foreign assets is not in itself a stress indicator given the size of the asset base, but changes in the banking system balance or Monetary Base can influence Hong Kong dollar interbank liquidity and funding costs. Institutions with significant Hong Kong dollar exposure should keep watching these trends alongside other HKMA publications.

Source: Hong Kong Monetary Authority