The Secretary for Economy and Finance, Mr Leong Vai Tac (1st right), holds a meeting to gain a better understanding on Macao’s economic and financial arrangements, following the United Kingdom’s vote to leave the European Union.
The Government is paying close attention to the latest developments, following the United Kingdom’s vote to leave the European Union. The Government has initiated a response mechanism to address any possible economic impact of this event on Macao. The Government expects only a limited impact on Macao regarding the consequences of the referendum held yesterday (Thursday) on the U.K.’s membership of the E.U. In particular, Macao holds only a small amount of sterling (British pounds) in the city’s portfolio of foreign currency reserves: only 0.35 percent of Macao’s 150.5 billion patacas (18.8 billion U.S. dollars) in foreign currency reserves is held in sterling. Macao has little direct trade with the U.K.; furthermore, the city’s economy is unlikely to be greatly affected in direct terms by changes in stock markets that are responsive to conditions in the U.K. The Government would take all necessary measures in order to ensure the stability of Macao’s economy and finances, said today the Secretary for Economy and Finance, Mr Leong Vai Tac. Mr Leong also today visited the headquarters of the Macao Monetary Authority. This was in order to gain a better understanding on Macao’s arrangements and strategy for minimising any economic risk to the city stemming from external events. Mr Leong has briefed the Chief Executive, Mr Chui Sai On, on Macao’s arrangements regarding this issue. Macao’s sound public finances, well-established fiscal reserve system, stable linked exchange rate system, and healthy financial system enable the Government to cope with volatility in international markets. As of April, Macao had an estimated fiscal reserve of 436.22 billion patacas. This figure does not include the 29.29 billion patacas surplus from the fiscal year of 2015. The Government is closely monitoring updates in the international economy, in order to update – in a timely manner – its investment portfolio. Members of the public are urged to pay extra attention in the near future regarding risk management, in particular when investing in stock markets.