Release at 8:15 a.m. EST Ottawa, February 5, 2007 2007-009 - Official
International Reserves 2007 -
The Department of Finance announced today that Canada's official international reserves increased by an amount equivalent to US$845 million during January to US$35,908 million.
Details on the level and composition of Canada's reserves as of January 31, 2007, 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
30,425
Deposits
3,633
Total securities and deposits
(liquid reserves)
34,058
Gold1
71
Special drawing rights (SDRs)
954
Reserve position in the IMF
825
Total:
January 31, 2007
35,908
December 31, 2006
35,063
Net change
845
Details on Deposits
Other central banks/Bank
for International Settlements
497
Banks headquartered in Canada
0
Of which:
located abroad
0
Banks headquartered abroad
3,136
Of which:
located in Canada
0
Total
3,633
Details of Net Change
Reserves management operations2
1,047
Gains and losses on gold sales
0
Net investment gains and losses
Return on investments3
32
Foreign currency debt
charges
-13
Revaluation effects4
-220
Net government operations5
0
Official intervention
0
Other transactions6
-1
Net change
845
Currency Composition of
Deposits and Securities
US dollars
16,679
Euro
16,882
Yen
497
Total
34,058
Predetermined Short-Term
Drains on Foreign Currency Reserves (Nominal Value)
0-1
month
1-3
months
3-12
months
Total
Foreign currency securities7
Principal
-833
-835
-1,980
-3,648
Interest
0
-177
-1,246
-1,423
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
-833
-1,012
-3,226
-5,071
Additional Information (Nominal
Value)
Undrawn, unconditional credit lines with
banks headquartered outside Canada
6,000
Securities lent under repurchase
agreements8
-2,385
Securities held under repurchase
agreements9
1,886
Financial derivatives assets (net,
marked to market)
Forwards
0
Swaps
1,195
Notes:
1. There were no sales of gold settled in January. On January 31,
gold holdings stood at 0.1 million ounces. The valuation is based
on the January 31, 2007, London p.m. fix of US$650.50 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 January, Canada bills increased
by US$397 million to a level of outstanding bills of US$1,776 million.
Cross-currency swaps of domestic obligations raised US$650 million.
3. "Return on investments" comprises US$100 million of interest earned on investments and a US$68-million decrease 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 January, the revaluation effect was mainly due to the
depreciation of the euro.
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 March 5, 2007 (covering the period February 2007).
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:
Clifton Lee-Sing
Financial Markets Division
Department of Finance
613-943-1944
David Gamble
Media Relations
Department of Finance
613-996-8080
For further information on the Exchange Fund Account, please consult the Report on the Management of Canada's Official International ReservesJanuary 1, 2005 March 31, 2006, located at www.fin.gc.ca/toce/2006/oir06_e.html.
