Official International Reserves - March 5, 2019

- All 2019 Official International Reserves -

The Department of Finance Canada announced today that Canada's official international reserves decreased by an amount equivalent to US$3,452 million during February to US$84,420 million. This was driven by reserves management funding operations (-US$3,196 million),¹ and a loss in net investments (-US$256 million).²

Details on the level and composition of Canada's reserves as of February 28, 2019, 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 February, a global bond of US$3,000 million matured. In addition, Canada bills decreased by US$109 million to a level of outstanding bills of US$2,144.1 million. An equivalent of US$213.4 million in cross-currency swaps was raised while US$300 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$123 million of interest earned on investments and a US$156 million decrease 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 February, the revaluation effect was mainly due to the depreciation 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 April 3, 2019 (covering the period of March 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.