| Journal Call no. | HG1302.Q37 |
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| Author | Hong Kong Monetary Authority. Monetary Policy and Markets Department. |
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| Article Title | Operation of monetary policy / Monetary Policy and Markets Department. |
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| Is Part Of | Quarterly bulletin / Hong Kong Monetary Authority ; no.23, May 2000, p.102-104, illus. |
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| Abstract | The Hong Kong dollar exchange rate tracked closely the rate of the Convertibility Undertaking in the first quarter of 2000. The size of the Aggregate Balance shrank in general, as demand for liquidity reduced after the smooth changeover of the millennium. In mid-February 2000, the Aggregate Balance briefly dropped to below zero when the Hong Kong dollar exchange rate eased and the Convertibility Undertaking Arrangement was triggered. Hong Kong dollar interest rates remained steady during the reporting period despite the tightening of United States (US) monetary policy on 2 February and 21 March 2000, each time by 25 b.p. As the interest rate gap between US dollar and Hong Kong dollar narrowed in general, the forward points softened during the quarter. The yields of Exchange Fund Notes eased in tandem with the yields of corresponding US Treasuries. |
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