Release at 8:15 a.m. EDT Ottawa, August 5, 2004 2004-042 - Official International Reserves 2004 - The Department of Finance announced today that Canada's official international reserves decreased by an amount equivalent to US$218 million during July to US$35,198 million. Details on the level and composition of Canada's reserves as of July 31, 2004, 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 Securities 29,191 Deposits 1,852 Total securities and deposits (liquid reserves) 31,043 Gold1 43 Special drawing rights (SDRs) 845 Reserve position in the IMF 3,267 Total: July 31, 2004 35,198 June 30, 2004 35,416 Net change -218 Details on Deposits Other central banks/Bank for International Settlements 451 Banks headquartered in Canada 0 Of which: located abroad 0 Banks headquartered abroad 1,401 Of which: located in Canada 0 ______ Total 1,852 Details of Net Change Reserves management operations2 26 Gains and losses on gold sales 0 Net investment gains and losses Return on investments3 152 Foreign currency debt charges -164 Revaluation effects4 -232 Net government operations5 0 Official intervention 0 Other transactions 0 Net change -218 Currency Composition of Deposits and Securities US dollars 16,744 Euro 13,285 Yen 1,004 Other 10 Total 31,043 Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)6 0-1 month 1-3 months 3-12 months Total Foreign currency securities7 Principal -978 -1,152 -5,512 -7,642 Interest -107 -130 -933 -1,170 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 -1,085 -1,282 -6,445 -8,812 Additional Information (Nominal Value) Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000 Securities lent under repurchase agreements8 -2,285 Securities held under repurchase agreements9 152 Financial derivatives assets (net, marked to market) Forwards 0 Swaps 60 Notes: There were no sales of gold settled in July. On July 31, gold holdings stood at 0.1 million ounces. The valuation is based on the July 30, 2004, London p.m. fix of US$391.40 per ounce. Net change in securities and deposits resulting from foreign currency funding activities of the Government. (Issuance of foreign currency liabilities used to acquire assets increases reserves, while maturities decrease reserves). During July Canada bills decreased by US$274 million to a level of outstanding bills of US$1,669 million. Cross-currency swaps of domestic obligations raised US$300 million. "Return on investments" comprises US$92 million of interest earned on investments and a US$60-million increase in the market value of securities resulting from changes in interest rates. "Revaluation effects" reflect changes in the market value of reserve assets resulting from movements in exchange rates. "Net government operations" are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves. Predetermined short-term drains include the Government's contractual obligations in foreign currencies related to payments of principal and interest associated with securities and commitments under swaps and forward contracts coming due during the next 12 months. "Foreign currency securities" include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities. "Securities lent under repurchase agreements" are included in total reserves. Collateral provided in securities-lending transactions is not included in total reserves. 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 September 3, 2004 (covering the period August 2004). A list of upcoming release dates is posted on the Department of Finance Web site located at: www.fin.gc.ca/invest_x/releaseDates_e.asp ___________________ For further information: Nigel Stephens Financial Markets Division (613) 943-1944 Harry Adams Public Affairs and Operations Division (613) 996-8080 For further information on the Exchange Fund Account, please consult the 2002 Annual Report to Parliament on the Operations of the Exchange Fund Account by the Minister of Finance and Report of the Auditor General to the Minister of Finance on the Examination of the Accounts and Financial Statements of the Exchange Fund Account, located at www.fin.gc.ca/purl/efa-e.html. If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site at http://www.fin.gc.cahttp://www.fin.gc.ca/scripts/register_e.asp Official International Reserves (10-Year Synopsis) US dollars Other currencies Gold SDRs IMF position Total (millions of US dollars) July 31, 2004 16,744 14,299 43 845 3,267 35,198 June 30, 2004 16,644 14,545 43 849 3,335 35,416 May 31, 2004 16,356 15,315 43 851 3,411 35,976 April 30, 2004 15,712 15,112 42 832 3,415 35,113 March 31, 2004 16,194 15,723 46 847 3,602 36,412 February 29, 2004 15,546 15,842 43 847 3,705 35,983 January 31, 2004 15,685 15,968 44 835 3,836 36,368 December 31, 2003 15,576 15,961 45 838 3,848 36,268 November 30, 2003 15,879 15,365 69 812 3,968 36,093 October 31, 2003 16,145 14,902 67 795 3,947 35,856 September 30, 2003 16,382 15,464 67 794 3,971 36,678 August 31, 2003 16,134 14,541 65 765 3,785 35,290 July 31, 2003 15,967 14,831 110 761 4,096 35,765 Dec. 31, 2002 17,946 14,739 205 712 3,567 37,169 Dec. 31, 2001 19,748 10,736 291 614 2,859 34,248 Dec. 31, 2000 21,692 7,327 323 574 2,508 32,424 Dec. 31, 1999 18,838 5,594 524 526 3,164 28,646 Dec. 31, 1998 15,907 4,004 122 1,097 2,297 23,427 Dec. 31, 1997 14,630 492 146 1,126 1,575 17,969 Dec. 31, 1996 17,521 507 155 1,168 1,227 20,578 Dec. 31, 1995 12,127 502 178 1,177 1,243 15,227 Dec. 31, 1994 9,693 526 199 1,148 910 12,475 Dec. 31, 1993 9,950 521 292 1,064 949 12,776
