Release at 8:15 a.m. EDT Ottawa, September 3, 2004 2004-046 - Official International Reserves 2004 - The Department of Finance announced today that Canada's official international reserves increased by an amount equivalent to US$689 million during August to US$35,887 million. Details on the level and composition of Canada's reserves as of August 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 29,513 Deposits 2,128 Total securities and deposits (liquid reserves) 31,641 Gold1 44 Special drawing rights (SDRs) 857 Reserve position in the IMF 3,345 Total: August 31, 2004 35,887 July 31, 2004 35,198 Net change 689 Details on Deposits Other central banks/Bank for International Settlements 627 Banks headquartered in Canada 0 Of which: located abroad 0 Banks headquartered abroad 1,501 Of which: located in Canada 0 Total 2,128 Details of Net Change Reserves management operations2 256 Gains and losses on gold sales 0 Net investment gains and losses Return on investments3 268 Foreign currency debt charges -24 Revaluation effects4 194 Net government operations5 0 Official intervention 0 Other transactions6 -5 Net change 689 Currency Composition of Deposits and Securities US dollars 17,018 Euro 13,593 Yen 1,028 Other 2 Total 31,641 Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)7 0-1 month 1-3 months 3-12 months Total Foreign currency securities8 Principal -1,050 -4,138 -2,511 -7,699 Interest -81 -238 -849 -1,168 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 -1,131 -4,376 -3,360 -8,867 Additional Information (Nominal Value) Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000 Securities lent under repurchase agreements9 -2,403 Securities held under repurchase agreements10 201 Financial derivatives assets (net, marked to market) Forwards 0 Swaps 261 Notes: 1. There were no sales of gold settled in August. On August 31, gold holdings stood at 0.1 million ounces. The valuation is based on the August 31, 2004, London p.m. fix of US$407.25 per ounce. 2. 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 August Canada bills increased by US$56 million to a level of outstanding bills of US$1,725 million. Cross-currency swaps of domestic obligations raised US$200 million. 3. "Return on investments" comprises US$96 million of interest earned on investments and a US$172-million increase in the market value of securities resulting from changes in interest rates. 4. "Revaluation effects" reflect changes in the market value of reserve assets resulting from movements in exchange rates. 5. "Net government operations" are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves. 6. Related to securities assumed by the Government of Canada on February 5, 2001, on the dissolution of Petro-Canada Limited. 7. 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. 8. "Foreign currency securities" include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities. 9. "Securities lent under repurchase agreements" are included in total reserves. Collateral provided in securities-lending transactions is not included in total reserves. 10. 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 October 5, 2004 (covering the period September 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: Sandra Lavoratore Financial Markets Division (613) 947-3919 Andrée Houde Public Affairs and Operations Division (613) 996-8080 For further information on the Exchange Fund Account, please consult the 2003 Report on the Management of Canada's Official International Reserves, which is available on the Department of Finance Canada Web site. 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) August 31, 2004 17,018 14,623 44 857 3,345 35,887 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 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
