Government of Canada plans to issue US-dollar global bond

News release

April 19, 2022 - Ottawa, Ontario - Department of Finance Canada

In Budget 2022, the Government of Canada reiterated its commitment to maintain liquid foreign reserves at or above three per cent of nominal gross domestic product.

To this effect, the Government of Canada today announced its intent to issue a US-dollar-denominated global bond tomorrow, April 20, subject to market conditions.

Issuing a global bond provides funds to supplement and diversify Canada’s liquid foreign reserves, which help promote orderly conditions for the Canadian dollar in foreign exchange markets and provide a source of liquidity to the government, if needed.

This US-dollar global bond will contribute to the stability of Canada’s foreign currency reserves, while also meeting the demand of investors seeking investment opportunities that benefit from Canada’s triple-A credit rating from most major credit rating agencies.

Quick facts

  • Canada holds its liquid foreign reserves in the Exchange Fund Account (EFA).

  • Foreign exchange reserves provide a general source of prudential liquidity and promote orderly conditions for the Canadian dollar in foreign exchange markets.

  • Global bond issuances are one source of funding that Canada used to purchase assets for the EFA.

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Contacts

Media may contact:

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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