Official International Reserves - January 4, 2019

News release

All 2019 Official International Reserves -

The Department of Finance Canada announced today that Canada's official international reserves increased by an amount equivalent to US$1,918 million during December to US$83,926 million. This was driven by reserves management funding operations (US$1,003 million)1, and a gain in net investments (US$915 million)2.

Details on the level and composition of Canada's reserves as of December 31, 2018, as well as the major factors underlying the change in reserves, are provided below. All figures are in millions of US dollars unless otherwise noted.

NOTES:

  1. Net change in securities and deposits resulting from foreign currency funding activities of the Government. Foreign reserves are managed under an asset-liability matching framework. Therefore, when a foreign currency liability matures, assets are used to repay the principal, leading to a decrease in reserves. During December, Canada bills increased by US$25.2 million to a level of outstanding bills of US$2,095.3 million. An equivalent of US$1,477.4 million in cross-currency swaps was raised while US$500 million in cross-currency swaps matured during the month.
  2. Net investment gains and losses include return on investments, foreign currency debt charges and revaluation effects.
  3. "Return on investments" comprises US$92 million of interest earned on investments and a US$596 million increase in the market value of securities.
  4. "Revaluation effects" reflect changes in the market value of reserve assets resulting from movements in exchange rates. In December, the revaluation effect was mainly due to the appreciation of the euro and the yen.
  5. "Net government operations" are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves.
  6. "Foreign currency securities" include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities.
  7. "Securities lent under repurchase agreements" are included in total reserves. Collateral provided in securities lending transactions is not included in total reserves.
  8. Cash invested under repurchase agreements is included in total reserves. Collateral provided in securities lending transactions is not included in total reserves.

Future Release Dates

The next release is February 5, 2019 (covering the period of January 2019).

For further information on the Exchange Fund Account, please consult the Report on the Management of Canada’s Official International Reserves—April 1, 2017 – March 31, 2018.


Foreign Currency Reserves
  Millions of US dollars
Securities 70,548
Deposits 2,731
Total securities and deposits (liquid reserves): 73,279
Gold 0
Special drawing rights (SDRs) 7,941
Reserve position in the IMF 2,706
Total:  
  December 31, 2018 83,926
  November 30, 2018 82,008
Net change: 1,918
Details on Deposits
  Millions of US dollars
Other central banks/Bank for International Settlements 2,731
Banks headquartered in Canada 0
  Of which: located abroad 0
Banks headquartered abroad 0
  Of which: located in Canada 0
Total: 2,731
Details of Net Change
  Millions of US dollars
Reserves management operations1 1,003
Gains and losses on gold sales 0
Net investment gains and losses:  
  Return on investments3 688
  Foreign currency debt charges -85
  Revaluation effects4 312
Net government operations5 0
Official intervention 0
Other transactions 0
Net change: 1,918
Currency Composition of Deposits and Securities
  Millions of US dollars
US dollar 49,090
Euro 13,873
Pound sterling 7,696
Yen 2,620
Total: 73,279
Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)
  Millions of US dollars
  0-1 month 1-3 months 3-12 months Total
Foreign currency securities6:        
  Principal -1,430 -4,046 -4,089 -9,566
  Interest -152 -231 -917 -1,301
Aggregate short forward positions in foreign currencies vis-à-vis Canadian dollar -12 0 0 -12
Aggregate long forward positions in foreign currencies vis-à-vis Canadian dollar 4 0 0 4
Total net drains: -1,590 -4,278 -5,006 -10,874
Additional Information (Nominal Value)
  Millions of US dollars
Undrawn, unconditional credit lines with banks headquartered outside Canada 0
Securities lent under repurchase agreements7 0
Securities held under repurchase agreements8 1,901
Financial derivatives assets (net, marked to market):  
  Forwards -6
  Swaps -7,209
Official International Reserves (10-Year Synopsis)
  Millions of US dollars
Date US dollars Other currencies Gold SDRs IMF position Total
December 31, 2018 49,090 24,189 0 7,941 2,706 83,926
November 30, 2018 47,932 23,703 0 7,891 2,482 82,008
October 31, 2018 48,930 22,812 0 7,866 2,480 82,088
September 28, 2018 47,752 22,682 0 7,892 2,357 80,683
August 31, 2018 48,173 22,771 0 7,926 2,368 81,238
July 31, 2018 48,232 23,268 0 7,943 2,374 81,817
June 29, 2018 47,589 23,864 0 7,913 2,399 81,765
May 31, 2018 46,821 23,970 0 7,971 2,015 80,777
April 30, 2018 47,211 24,874 0 8,090 2,046 82,221
March 31, 2018 47,477 25,568 0 8,177 2,073 83,295
February 28, 2018 50,589 25,695 0 8,134 2,068 86,486
January 31, 2018 50,615 25,889 0 8,160 2,084 86,748
December 29, 2017 51,343 25,308 0 7,975 1,999 86,625

December 31, 2018 49,090 24,189 0 7,941 2,706 83,926
December 29, 2017 51,343 25,308 0 7,975 1,999 86,625
December 30, 2016 52,496 20,453 0 7,578 2,191 82,718
December 31, 2015 48,229 20,848 58 7,899 2,719 79,753
December 31, 2014 43,756 19,000 116 8,164 3,664 74,700
December 31, 2013 39,514 18,916 115 8,675 4,717 71,937
December 31, 2012 35,622 19,621 181 8,754 4,368 68,546
December 30, 2011 32,826 19,985 167 8,966 3,875 65,819
December 31, 2010 26,677 18,211 153 9,054 3,056 57,151
December 31, 2009 23,879 18,723 119 9,212 2,424 54,357
December 31, 2008 22,804 18,733 95 991 1,249 43,872

Contacts

For further information, media may contact:

Media Relations
Department of Finance Canada
fin.media-media.fin@canada.ca
613-369-4000


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