Singapore Monetary Authority: No large deposits have flowed into our country from Hong Kong

Source: Mondo Visione 2020-06-08

The Monetary Authority of Singapore clarified yesterday that it said no large deposits from Hong Kong have flowed into Singapore.

According to a statement issued by the HKMA, although foreign currency deposits have increased substantially since the beginning of this year, the growth rate is much lower than some media reports. The sources of growth in local foreign currency deposits vary, and the reasons for deposits vary.

The HKMA stated that multiple reports based on the strong foreign currency deposits of domestic banking units (DBUs) in April concluded that a large amount of deposits flowed from Hong Kong to Singapore, and the relevant reports are not correct.

As of the end of April this year, the total amount of non-bank foreign currency deposits in the Singapore banking system was S$781 billion, an increase of 20% from a year ago.

The HKMA pointed out that media reports indicated that the bank’s foreign currency deposits increased nearly four times in April from a year earlier, and it seems to focus only on domestic banking units and ignore the Asian Currency Unit (ACU) . It is meaningless to focus only on the foreign currency deposits of DBU, because it only accounts for 5% of the total number of DBU and ACU.

The HKMA pointed out that Singapore’s strong growth in foreign currency deposits this year came from different sources, namely, local, regional and non-regional, with no regional or national sources dominating.

DBU and ACU are different ledgers set up by the same bank for regulatory purposes. The HKMA announced in 2015 that the two will be merged into one because it makes no sense to separate the two. In January this year, Congress passed the abolition of this separate legislative amendment, the effective date to be announced.

DBU

ACU

MAS

Singapore Monetary Authority: No large deposits have flowed into our country from Hong Kong

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