Release at 8:15 a.m. EDT Ottawa, September 6, 2006 2006-044
- Official International Reserves 2006 -
The Department of Finance announced today that Canada's official international reserves decreased by an amount equivalent to US$538 million during August to US$35,853 million.
Details on the level and composition of Canada's reserves as of August 31, 2006, 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
29,989
Deposits
3,748
Total securities and deposits
(liquid reserves)
33,737
Gold1
68
Special drawing rights (SDRs)
949
Reserve position in the IMF
1,099
Total:
August 31, 2006
35,853
July 31, 2006*
36,391
Net change
-538
Details on Deposits
Other central banks/Bank for
International Settlements
784
Banks headquartered in Canada
0
Of which: located abroad
0
Banks headquartered abroad
2,964
Of which: located in Canada
0
Total
3,748
Details of Net Change
Reserves management operations2
-804
Gains and losses on gold sales
0
Net investment gains and losses
Return on investments3
270
Foreign currency debt
charges
-47
Revaluation effects4
42
Net government operations5
0
Official intervention
0
Other transactions6
1
Net change
-538
Currency Composition of Deposits
and Securities
US dollars
17,010
Euro
16,213
Yen
514
Total
33,737
* The total official international reserves figure for July 2006 has been restated from US$36,395 million to US$36,391 million. See the footnote at the end of this document for further information (page 4). [Return]
Predetermined Short-Term Drains on Foreign Currency Reserves
(Nominal Value)
0-1
month
1-3
months
3-12
months
Total
Foreign currency
securities7
Principal
-1,281
-1,103
-1,678
-4,062
Interest
-62
-213
-1,115
-1,390
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
-1,343
-1,316
-2,793
-5,452
Additional
Information (Nominal Value)
Undrawn,
unconditional credit lines with banks headquartered outside
Canada
6,000
Securities lent
under repurchase agreements8
-2,349
Securities held
under repurchase agreements9
1,666
Financial
derivatives assets (net, marked to market)
Forwards
0
Swaps
3,333
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, 2006, London p.m. fix of US$623.50 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, a
global bond of US$1,000 million matured. In addition, Canada bills
increased by US$196 million to a level of outstanding bills of
US$1,804 million.
3. "Return on investments" comprises US$107 million of
interest earned on investments and a US$163-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,
following the privatization of Petro-Canada in July 1991, and the
subsequent dissolution of Petro-Canada Limited in 2001.
7. "Foreign currency securities" include maturities of
foreign currency debt, cross-currency swap payments and an
estimate of interest payments on foreign currency liabilities.
8. "Securities lent under repurchase agreements" are
included in total reserves. Collateral provided in
securities-lending transactions is not included in total reserves.
9. 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 4, 2006 (covering the period September 2006).
A list of upcoming release dates is posted on the Department of Finance website located at www.fin.gc.ca/invest_x/releaseDates_e.asp.
___________________________________ For further information, media may contact:
Sandra Lavoratore
Financial Markets Division Department of Finance
613-947-3919
David Gamble
Media Relations Department of Finance
613-996-8080
For further information on the Exchange Fund Account, please consult the 2004 Report on the Management of Canada's Official International Reserves, located at www.fin.gc.ca/toce/2005/oir05_e.html.
If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance website at 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, 2006
17,010
16,727
68
949
1,099
35,853
July 31, 2006*
17,712
16,572
69
942
1,096
36,391
June 30, 2006*
17,671
16,143
67
939
1,092
35,912
May 31, 2006*
17,846
15,715
71
949
1,103
35,684
April 30, 2006
18,660
14,997
70
931
1,058
35,716
March 31, 2006
20,204
13,812
63
917
1,038
36,034
February 28, 2006
16,707
13,974
61
908
1,034
32,684
January 31, 2006
16,813
14,135
62
907
1,042
32,959
December 31, 2005
16,842
13,822
56
897
1,401
33,018
November 30, 2005
16,646
14,566
54
894
2,039
34,199
October 31, 2005
16,909
14,214
51
898
2,142
34,214
September 30, 2005
16,725
13,824
52
900
2,098
33,599
August 31, 2005
16,878
14,354
47
907
2,113
34,299
Dec. 31, 2004
14,426
15,740
48
925
3,327
34,466
Dec. 31, 2003
15,575
15,961
45
838
3,848
36,267
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
* The total official international reserves figures from May to July 2006 have been restated. The magnitude of the restatements is minor. The market valuation of US-dollar-denominated securities held as part of Canada's reserves has been adjusted. [Return]
