Official International Reserves - January 6, 2021

All 2021 Official International Reserves -

The Department of Finance Canada announced today that Canada's official international reserves decreased by an amount equivalent to US$1,314 million during December to US$90,428 million. This was driven by reserves management funding operations (-US$1,810 million)[1], a net gain in investments (US$626 million)[2] and net government operations (-US$130 million).[5]

Details on the level and composition of Canada's reserves as of December 31, 2020, 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.

Foreign currency reserves
  Millions of US dollars
Securities 75,172
Deposits 1,648
Total securities and deposits (liquid reserves): 76,820
Gold 0
Special drawing rights (SDRs) 8,886
Reserve position in the International Monetary Fund (IMF) 4,722
Total:  
  December 31, 2020 90,428
  November 30, 2020 91,742
Net change: -1,314
Details on deposits
  Millions of US dollars
Other central banks/Bank for International Settlements 1,648
Banks headquartered in Canada 0
  Of which: located abroad 0
Banks headquartered abroad 0
  Of which: located in Canada 0
Total: 1,648
Details of net change
  Millions of US dollars
Reserves management operations[1] -1,810
Gains and losses on gold sales 0
Net investment gains and losses:  
  Return on investments[3] -2
  Foreign currency debt charges -56
  Revaluation effects[4] 684
Net government operations[5] -130
Official intervention 0
Other transactions 0
Net change: -1,314
Currency composition of deposits and securities
  Millions of US dollars
US dollar 49,236
Euro 16,059
Pound sterling 6,829
Yen 4,696
Total: 76,820
Predetermined short-term drains on foreign currency reserves (nominal value)
Millions of US dollars
  0 to 1 month 1 to 3 months 3 to 12 months Total
Foreign currency securities:[6]        
  Principal -3,823 -3 520 -5,064 -12,407
  Interest -96 -113 -537 -746
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: -3,919 -3,633 -5,601 -13,152
Additional information (nominal value)
  Millions of US dollars
Undrawn, unconditional credit lines with banks headquartered outside Canada 0
Securities lent under repurchase agreements[7] 0
Securities held under repurchase agreements[8] 946
Financial derivatives assets (net, marked to market):  
  Forwards -76
  Swaps -2,254

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$1,485 million to a level of outstanding bills of US$4,210 million. An equivalent of US$325 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$63 million of interest earned on investments and a US$65 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 the pound sterling.

[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.

Official international reserves (10-year synopsis)
Millions of US dollars
Date US dollars Other currencies Gold SDRs IMF position Total
December 31, 2020 49,236 27,584 0 8,886 4,722 90,428
November 30, 2020 51,179 27,301 0 8,859 4,403 91,742
October 30, 2020 51,276 26,506 0 8,744 4,346 90,872
September 30, 2020 51,347 25,969 0 8,719 4,122 90,157
August 31, 2020 51,001 25,908 0 8,803 4,183 89,895
July 31, 2020 52,027 25,442 0 8,766 4,165 90,400
June 30, 2020 51,047 23,649 0 8,534 4,047 87,277
May 29, 2020 52,199 23,016 0 8,424 3,733 87,372
April 30, 2020 52,701 22,850 0 8,387 3,384 87,322
March 31, 2020 51,886 22,724 0 8,410 3,080 86,100
February 28, 2020 52,755 23,240 0 8,463 3,110 87,568
January 31, 2020 51,908 22,929 0 8,491 3,144 86,472
December 31, 2019 48,646 24,967 0 8,527 3,157 85,297
 
December 31, 2020 49,236 27,584 0 8,886 4,722 90,428
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

Future release dates

The next release is February 3, 2021 (covering the period of January 2021).

For further information on the Exchange Fund Account, please consult the Report on the Management of Canada's Official International Reserves—April 1, 2019 – March 31, 2020.

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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