Aggregate Balance: the sum of balances in clearing accounts and reserve accounts kept with the central bank.
Authorized Institution (AI): an institution authorized to carry on the business of taking deposits, which includes licensed banks, restricted license banks, and deposit-taking companies.
Best Lending Rate: a benchmark interest rate used by banks to price loans.
Certificates of Indebtedness (CIs): certificates issued by the Financial Secretary to be held by note-issuing banks as cover for banknotes they issue.
Composite Consumer Price Index (CPI): a main consumer price index compiled based on the aggregate expenditure pattern of all households in Hong Kong.
Composite Interest Rate: a weighted average interest rate of all Hong Kong dollar interest-rate-sensitive liabilities, which includes deposits from customers and other debt instruments.
Convertibility Undertaking (CU): an undertaking by a central bank or currency board to convert domestic currency into foreign currency and vice versa at a fixed exchange rate.
Convertibility Zone: the Hong Kong dollar-US dollar exchange rate band within which the HKMA may choose to conduct market operations consistent with Currency Board principles.
Exchange Fund Bills and Notes (EFBNs): debt instruments issued by the HKMA for the account of the Exchange Fund, fully backed by foreign reserves.
Monetary Base: a part of the monetary liabilities of a central bank, defined as the sum of currency in circulation, reserve balance or clearing balance, and Certificates of Indebtedness.
Money supply: the total stock of money available in the economy, measured by three definitions (M1, M2, and M3).
Nominal and Real Effective Exchange Rate (NEER and REER): an indicator of the overall exchange rate value of the Hong Kong dollar against a basket of currencies of Hong Kong's principal trading partners.
Published: 2024-04-03 ยท Source: HKMA
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