AMCM strengthens surveillance following Trump’s win

The Monetary Authority of Macao (AMCM) issued a statement yesterday that apparently reacts to Donald Trump’s U.S. election win. AMCM states that “in response to possible large uncertainties in the markets,” appropriate established surveillance and response mechanisms were initiated yesterday.

The AMCM’s Crisis Management Group is expected to closely monitor changes in the international financial markets in accordance with established surveillance indicators in order to assess the impact on Macau’s monetary and financial markets and returns on reserve investment.

AMCM stated that it has been “paying close attention to the developments in the global economy and finance as well as Macau’s monetary and financial markets” and “will implement timely standby measures if needed in order to maintain the stability of Macau’s economy and financial system.”

The authority stressed that “sufficient liquidity is available to cope with unexpected events,” providing figures to evidence that liquidity: “The capital adequacy ratio of Macau banks is relatively high while the one-month and three-month short-term liquidity ratios both exceed 50 percent, which is far above the international requirement of 25 percent to 30 percent. […] Macau’s public finance remains stable. The preliminary estimate of Macau SAR’s foreign exchange reserves amounted to MOP154.9 billion (USD19.40 billion) at the end of September 2016. Macau SAR’s foreign exchange reserves at end-September 2016 represented 12 times the currency in circulation.”