MACAU’S APPETITE FOR FOREIGN CURRENCY DEPOSITS GROWS

2014/11/21

From：Macau Buisness Daily

Macau residents and the government continue to put more and more of their money into foreign currency deposits, especially those denominated in Hong Kong dollars and yuan.
According to data from the Monetary Authority of Macau, residents here and the public administration had, in September, MOP423 billion in foreign currency deposited in bank accounts. That’s an increase of 18.4 percent year-on-year (MOP358 billion). In the space of a year, locals deposited in Macau banks the equivalent of more than MOP65 billion in foreign money. The deposits form the largest part of the international liabilities of the territory’s banking system.
The total international liabilities had a similar growth rate in September, going up by 23.2 percent from a year ago to MOP958.1 billion (US$119.8 billion). Of these, external liabilities and local liabilities in foreign currencies expanded year-on-year by 24.9 percent to MOP495.0 billion and 21.4 percent to MOP463.0 billion, respectively.
With the economy booming and more foreign companies and workers arriving in Macau, the size of international assets in banks here continue to increase at a double-digit pace every year, despite a small drop in the last quarter. In September, international assets here totalled MOP1,008.7 billion (US$126.1 billion), growing 24 percent more than a year ago. Compared to end-June, the figure, however, represented a drop of 1 percent. The slowdown since June made the share of international assets in total banking assets fall to 86.5 percent in September from 87.2 percent at end-June. The share of international liabilities in total banking liabilities also dropped to 82.1 percent from 82.8 percent in the same timeframe.
Most of the foreign assets and liabilities in Macau’s banking system come from Asia and Europe, AMCM said. Claims on Mainland China were 36 percent of the total, followed by Hong Kong at 32 percent. In Europe, claims on Portugal, the United Kingdom and Germany took up 6.3 percent, 1.6 percent and 1.5 percent.

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