This photo taken in Hong Kong on Jan 12, 2008 shows Hong Kong dollar and US dollar banknotes. (LAURENT FIEVET / AFP)

Hong Kong — The official foreign currency reserves of Hong Kong expanded to US$441.3 billion at the end of December 2019 from that of US$434.2 billion at the end of November, the Hong Kong Monetary Authority (HKMA) announced on Tuesday. 

The total foreign currency reserve assets of US$441.3 billion represent over six times the currency in circulation or about 46 per cent of Hong Kong dollar M3, according to the HKMA. 

HKMA added that there were no unsettled foreign exchange contracts at the end of December. 

HKMA added that there were no unsettled foreign exchange contracts at the end of Dec

READ MORE: HK foreign currency reserve assets up in February

In Hong Kong, foreign reserves are the foreign assets managed by the HKMA. The main uses of the reserves are to safeguard the exchange value of the Hong Kong dollar, and to maintain the stability and integrity of the monetary and financial systems of Hong Kong, according to the HKMA. 

ALSO READ: HK foreign currency reserve assets up in January

HKMA has recently spent billions to defend the city's currency peg. Elevated local rates are currently increasing the appeal of owning the city’s currency, after years of depreciation wagers.

Hong Kong’s currency posted its longest rally in eight years in Dec, boosted in part by foreign funds buying stocks.