Release at 8:15 a.m. EST Ottawa, January 6, 2005 2004-002 - Official International Reserves 2005 - The Department of Finance announced today that Canada's official international reserves increased by an amount equivalent to US$396 million during December to US$34,467 million. Details on the level and composition of Canada's reserves as of December 31, 2004, as well as the major factors underlying the change in reserves, are provided below. All figures are in millions of US dollars unless otherwise noted. Foreign Currency Reserves Securities 28,151 Deposits 2,016 Total securities and deposits (liquid reserves) 30,167 Gold1 48 Special drawing rights (SDRs) 925 Reserve position in the IMF 3,327 Total: December 31, 2004 34,467 November 30, 2004* 34,071 Net change 396 Details on Deposits Other central banks/Bank for International Settlements 513 Banks headquartered in Canada 0 Of which: located abroad 0 Banks headquartered abroad 1,503 Of which: located in Canada 0 _____ Total 2,016 Details of Net Change Reserves management operations2 103 Gains and losses on gold sales 0 Net investment gains and losses Return on investments3 173 Foreign currency debt charges -140 Revaluation effects4 259 Net government operations5 0 Official intervention 0 Other transactions6 1 Net change 396 Currency Composition of Deposits and Securities US dollars 14,427 Euro 14,642 Yen 1,094 Other 4 Total 30,167 * Please note that the total official international reserves figure for November 2004 has been restated from US$ 34,066 million to US$ 34,071 million. See the footnote at the end of this document for further information (page 4). 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 -890 -1,018 -4,800 -6,708 Interest -50 -149 -1,046 -1,245 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 -940 -1,167 -5,846 -7,953 Additional Information (Nominal Value) Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000 Securities lent under repurchase agreements9 -2,924 Securities held under repurchase agreements10 319 Financial derivatives assets (net, marked to market) Forwards 0 Swaps 954 Notes: 1. There were no sales of gold settled in December. On December 31, gold holdings stood at 0.1 million ounces. The valuation is based on the December 31, 2004, London a.m. fix of US$438.00 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 December, Canada bills decreased by US$129 million to a level of outstanding bills of US$1,424 million. Cross-currency swaps of domestic obligations raised US$475 million, and a total of US$167 million equivalent in cross-currency swaps matured. In addition, Euro Medium-Term Notes of US$76 million matured. 3. "Return on investments" comprises US$95 million of interest earned on investments and a US$78-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. In December, the appreciation of the euro accounted for most of the revaluation effect. 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, following privatization of Petro-Canada in July 1991, and the subsequent dissolution of Petro-Canada Limited in 2001. 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 February 3, 2005 (covering the period January 2005). 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) December 31, 2004 14,427 15,740 48 925 3,327 34,467 November 30, 2004* 14,113 15,663 49 912 3,334 34,071 October 31, 2004* 17,271 15,001 46 880 3,262 36,460 September 30, 2004* 17,527 14,633 45 862 3,198 36,265 August 31, 2004* 17,022 14,623 44 857 3,345 35,891 July 31, 2004* 16,747 14,299 43 845 3,267 35,201 June 30, 2004* 16,646 14,545 43 849 3,335 35,418 May 31, 2004* 16,358 15,315 43 851 3,411 35,978 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 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 from May to November 2004 have been restated. The magnitude of the restatements is minor. The market valuation of a US dollar-denominated security held as part of Canada's reserves has been adjusted.
