The preliminary estimate of Macau's foreign exchange reserves amounted to 211.0 billion patacas (US$26.31 billion) at the end of September, the Macau Monetary Authority (AMCM) has announced. The latest statistics released by the city's quasi-central bank yesterday indicated that the reserves decreased by 0.6 percent from the revised value of 212.2 billion patacas for August. Macau's foreign exchange reserves at the end of September represented 11 times the local currency in circulation, or 87.1 percent of pataca M2 at the end of August.
M2 is a calculation of the money supply that comprises all elements of M1 as well as "near money". M1 consists of cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds, and other time deposits, according to Investopedia.
While the pataca is Macau's sole legal tender, the Hong Kong dollar is the special administrative region's customary tender.
The trade-weighted effective exchange rate index for the pataca dropped 0.02 point month-on-month and 1.99 points year-on-year to 103.2 in September 2021, implying that, overall speaking, the exchange rate of the pataca declined against the currencies of Macau's major trading partners.
- Xinhua, MPD
