HONG KONG Jan 7 The Hong Kong Monetary
Authority (HKMA) will issue an additional HK$21 billion ($2.71
billion) in Exchange Fund bills in January to help banks manage
Three-month Exchange Fund bills to be tendered on Jan. 15,
22 and 29 will be increased to HK$15 billion, the HKMA said on
Six-month bills will be expanded by HK$6 billion, it said.
Interbank liquidity is expected to remain abundant after the
issuance of additional Exchange Fund bills, which is not
expected to have a significant impact on liquidity conditions
and interest rates, the city's de facto central bank added.
Ample liquidity was boosted by money market injections by
the HKMA in the past few months to rein in the Hong Kong dollar
as capital inflows pushed the currency to the strong end
of its trading band with the U.S. dollar.
The cumulative amount of Hong Kong dollars injected into the
market since Oct. 20, 2012, is $13.831 billion.
The issuance of additional bills in the coming weeks will
reduce the aggregate balance by about HK$7 billion on each of
the following days: Jan. 16, 23 and 30.
($1 = 7.7506 Hong Kong dollars)
(Reporting by Michelle Chen; Editing by Jacqueline Wong)