Macao's forex reserves up 41.7% in Feb

Macao's foreign exchange reserves for February 2008 were estimated to surge 41.7% year-on-year to 108.9 billion patacas (US$13.6 billion), according to the Monetary Authority of Macao (AMCM) on Monday.

The city's reserves surged 2.6% in February, or 23 times the currency in circulation in the same month, as compared with the previous month, according to AMCM.

AMCM has forecast the pataca will be less appreciated against the anchor currency in 2008, which could on the one hand raise the imported inflation, while on the other hand has its positive effect on Macao's export competitiveness, but still depends on its stimulation impact on domestic costs, according to the AMCM review.

The Special Administrative Region (SAR) would continue to register a surplus in its fiscal balance, according to the 2008 SAR Government Budget. On this basis, the government intended to build a fiscal reserve system, aimed to consolidate the local discipline and help the city better know of the economic environment.