Hong Kong to Launch New Series of Effective Exchange Rate Index

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Last updated at: (Beijing Time) Wednesday, November 28, 2001

Hong Kong to Launch New Series of Effective Exchange Rate Index

A new series of Effective Exchange Rate Index (EERI) for the Hong Kong dollar (HKD) will be published by the Census and Statistics Department as from January 2, 2002, replacing the existing series of EERI.

The existing currency basket of the EERI contains 17 currenciesof which five are national currencies of participating countries of the euro. They will be replaced by the euro in the new series of EERI.

As from January 1, 2002, euro notes and coins will replace notes and coins in national currencies of participating countries of the euro. Hence, the currency basket for compiling EERI has to be updated.

Another currency, the Philippine peso, is added to the new series of EERI following a review of the trade pattern of Hong Kong.

The new currency basket of the EERI will include the following 14 currencies: Australian dollar, Malaysian ringgit, Singapore dollar, Canadian dollar, Swiss franc, Chinese renminbi, Philippinepeso, Thai baht, euro, Pound sterling. U.S. dollar, Japanese yen, south Korea won, etc.

The new series of EERI, based on January 2000 as 100, will replace the existing series as from January 2, 2002. Same as for the existing series, the new series of EERI will be released on a daily basis except for non-trading days.

Daily EERI using the new weights have been compiled for the newseries dating back to January 3, 2000, while monthly and annual series are available dating back to January 2000 and 2000 respectively.

The new series of EERI dating back to earlier periods are derived based on movements in the old series and using a conversion factor obtained from the values of the two index seriesin an overlapping period.