Release at 8:15 a.m. EST Ottawa, December 3, 2004 2004-073 - Official International Reserves 2004 - The Department of Finance announced today that Canada's official international reserves decreased by an amount equivalent to US$2,389 million during November to US$34,066 million. Details on the level and composition of Canada's reserves as of November 30, 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 27,882 Deposits 1,889 Total securities and deposits (liquid reserves) 29,771 Gold1 49 Special drawing rights (SDRs) 912 Reserve position in the IMF 3,334 Total: November 30, 2004 34,066 October 31, 2004* 36,455 Net change -2,389 * Please note that the total official international reserves figure for October 2004 has been restated from US$36,457 million to US$36,455 million. See the footnote at the end of this document for further information. Details on Deposits Other central banks/Bank for International Settlements 1,038 Banks headquartered in Canada 0 Of which: located abroad 0 Banks headquartered abroad 851 Of which: located in Canada 0 _____ Total 1,889 Details of Net Change Reserves management operations2 -3,122 Gains and losses on gold sales 0 Net investment gains and losses Return on investments3 182 Foreign currency debt charges -111 Revaluation effects4 662 Net government operations5 0 Official intervention 0 Other transactions 0 Net change -2,389 Currency Composition of Deposits and Securities US dollars 14,108 Euro 14,571 Yen 1,088 Other 4 Total 29,771 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 -952 -736 -3,265 -4,953 Interest -152 -85 -949 -1,186 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 -1,104 -821 -4,214 -6,139 Additional Information (Nominal Value) Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000 Securities lent under repurchase agreements8 -2,621 Securities held under repurchase agreements9 104 Financial derivatives assets (net, marked to market) Forwards 0 Swaps 1,447 Notes: There were no sales of gold settled in November. On November 30, gold holdings stood at 0.1 million ounces. The valuation is based on the November 30, 2004, London p.m. fix of US$453.40 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 November, Canada bills increased by US$40 million to a level of outstanding bills of US$1,553 million. A total of US$100 million in cross-currency swaps matured. In addition, Euro Medium-Term Notes of US$1,062 million and a global bond of US$2 billion matured. "Return on investments" comprises US$101 million of interest earned on investments and a US$81-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. In November, the appreciation of the euro accounted for most of the revaluation effect. "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 January 6, 2005 (covering the period December 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 David Gamble 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, located at http://www.fin.gc.ca/toce/2004/oir04_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.ca/scripts/register_e.asp. Official International Reserves (10-Year Synopsis) US dollars Other currencies Gold SDRs IMF position Total (millions of US dollars) November 30, 2004 14,108 15,663 49 912 3,334 34,066 October 31, 2004* 17,266 15,001 46 880 3,262 36,455 September 30, 2004 17,522 14,633 45 862 3,198 36,260 August 31, 2004 17,018 14,623 44 857 3,345 35,887 July 31, 2004* 16,743 14,299 43 845 3,267 35,197 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* 15,648 15,840 43 847 3,705 36,083 January 31, 2004* 15,684 15,967 44 835 3,836 36,366 December 31, 2003 15,576 15,961 45 838 3,848 36,268 November 30, 2003* 15,878 15,364 69 812 3,968 36,091 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 *Please note that the total official international reserves figures for November 2003 and for January, February, July and October 2004 have been restated. The magnitude of the restatements is minor. The valuation of securities held as part of Canada's reserves has been adjusted from the last calendar day of the month to the last business day of the month, consistent with standards endorsed by the IMF.
