Official International Reserves - January 6, 2020

News release

All 2020 Official International Reserves -

The Department of Finance Canada announced today that Canada’s official international reserves increased by an amount equivalent to US$284 million during December to US$85,297 million. This was driven by reserves management funding operations (US$47 million)1, and a net gain in investments (US$237 million)2.

Details on the level and composition of Canada’s reserves as of December 31, 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 December, Canada bills decreased by US$10.7 million to a level of outstanding bills of US$1,906.4 million. An equivalent of US$368.1 million in cross-currency swaps was raised during the month while US$210.3 million in cross-currency swaps and US$100.0 million in euro medium term notes 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$85 million of interest earned on investments and a US$248 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 December, the revaluation effect was mainly due to the appreciation of the euro and GBP.
  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, 2020 (covering the period of January 2020).

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 67,631
Deposits 5,982
Total securities and deposits (liquid reserves): 73,613
Gold 0
Special drawing rights (SDRs) 8,527
Reserve position in the IMF 3,157
Total:  
  December 31, 2019 85,297
  November 29, 2019 85,013
Net change: 284
Details on Deposits
  Millions of US dollars
Other central banks/Bank for International Settlements 5,982
Banks headquartered in Canada 0
  Of which: located abroad 0
Banks headquartered abroad 0
  Of which: located in Canada 0
Total: 5,982
Details of Net Change
  Millions of US dollars
Reserves management operations1 47
Gains and losses on gold sales 0
Net investment gains and losses:  
  Return on investments3 -163
  Foreign currency debt charges -89
  Revaluation effects4 489
Net government operations5 0
Official intervention 0
Other transactions 0
Net change: 284
Currency Composition of Deposits and Securities
  Millions of US dollars
US dollar 48,646
Euro 14,876
Pound sterling 6,861
Yen 3,230
Total: 73,613
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 -4,198 -2,018 -5,886 -12,102
  Interest -177 -170 -731 -1,079
Aggregate short forward positions in foreign currencies vis-à-vis Canadian dollar 0 0 0 0
Aggregate long forward positions in foreign currencies vis-à-vis Canadian dollar 0 0 0 0
Total net drains: -4,375 -2,188 -6,618 -13,181
Additional Information (Nominal Value)
  Millions of US dollars
Undrawn, unconditional credit lines with banks headquartered outside Canada 0
Securities lent under repurchase agreements7 -199
Securities held under repurchase agreements8 2,997
Financial derivatives assets (net, marked to market):  
  Forwards -20
  Swaps -4,593
Official International Reserves (10-Year Synopsis)
Millions of US dollars
Date US dollars Other currencies Gold SDRs IMF position Total
December 31, 2019 48,646 24,967 0 8,527 3,157 85,297
November 29, 2019 48,941 24,480 0 8,498 3,094 85,013
October 31, 2019 49,425 24,558 0 8,375 3,157 85,515
September 30, 2019 49,662 24,179 0 8,277 3,120 85,238
August 30, 2019 50,478 24,230 0 8,308 3,132 86,148
July 31, 2019 50,189 23,579 0 8,344 3,148 85,260
June 28, 2019 50,205 24,722 0 8,454 2,919 86,300
May 31, 2019 50,394 24,009 0 8,353 2,948 85,704
April 30, 2019 49,362 24,040 0 8,464 2,966 84,832
March 29, 2019 48,271 24,268 0 8,209 2,653 83,401
February 28, 2019 49,023 24,459 0 8,266 2,672 84,420
January 31, 2019 52,450 24,458 0 8,277 2,687 87,872
December 31, 2018 49,090 24,189 0 7,941 2,706 83,926
 
December 31, 2019 48,646 24,967 0 8,527 3,157 85,297
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

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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