MSAR Government closely monitors international financial market developments Macao’s fiscal and financial positions are strong enough to withstand market volatilities

The SAR Government has been paying close attention to the developments of global economy and finance as well as Macao’s monetary and financial markets. In response to possible large uncertainties in the markets, the Monetary Authority of Macao (AMCM) initiated relevant established surveillance and response mechanism today (9 November 2016) while strengthening the communication and cooperation with financial institutions in Macao. The AMCM will implement timely the standby measures if needed, in order to maintain the stability of Macao’s economy and financial system. The SAR Government stresses that the capital adequacy ratio of Macao banks is relatively high while the one-month and three-month short-term liquidity ratios both exceed 50%, which is far above the international requirement of 25% to 30%. Hence, sufficient liquidity is available to cope with unexpected events. Macao’s public finance remains stable. The preliminary estimate of Macao SAR’s foreign exchange reserves amounted to MOP154.9 billion (USD19.40 billion) at the end of September 2016. Macao SAR’s foreign exchange reserves at end-September 2016 represented 12 times the currency in circulation. On the other hand, as of end-August 2016, the preliminary estimate of Macao SAR Fiscal Reserve assets amounted to MOP438.3 billion (excluding the fiscal surplus of MOP29.3 billion for 2015). With Macao SAR’s sound public finance, stable balance of payments, credible linked exchange rate system and healthy financial system, the Government and local financial system are able to cope with volatilities in financial markets. In addition, the AMCM’s Crisis Management Group will pay close attention to changes in the international financial markets, in accordance with established surveillance indicators in order to judge the impacts on Macao’s monetary and financial markets and return on reserve investment. The AMCM will implement swiftly the standby measures, if necessary. Finally, with anticipated increased volatilities in the financial markets in the near future, the SAR Government urges the general public to invest prudently in one’s capacity and pay attention to risks.