Release at 8:15 a.m. EDT Ottawa, August 3, 2007 2007-064
The Department of Finance announced today that Canada's official international reserves increased by an amount equivalent to US$890 million during July to US$40,303 million.
Details on the level and composition of Canada's reserves as of July 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
34,068
Deposits
4,493
Total securities and deposits (liquid reserves)
38,561
Gold1
73
Special drawing rights (SDRs)
984
Reserve position in the IMF
685
Total:
July 31, 2007
40,303
June 30, 2007
39,413
Net change
890
Details on Deposits
Other central banks/Bank for International Settlements
486
Banks headquartered in Canada
0
Of which: located abroad
0
Banks headquartered abroad
4,007
Of which: located in Canada
0
Total
4,493
Details of Net Change
Reserves management operations2
464
Gains and losses on gold sales
0
Net investment gains and losses
Return on investments3
348
Foreign currency debt charges
-146
Revaluation effects4
225
Net government operations5
0
Official intervention
0
Other transactions
-1
Net change
890
Currency Composition of Deposits and Securities
US dollars
20,067
Euro
17,991
Yen
503
Total
38,561
Predetermined
Short-Term Drains on Foreign Currency Reserves (Nominal Value)
0-1
month
1-3
months
3-12
months
Total
Foreign currency securities6
Principal
-1,038
-1,368
-4,759
-7,164
Interest
-5
-227
-1,330
-1,561
Aggregate short forward positions in foreign
currencies vis-à-vis Canadian dollar
-600
-750
0
-1,350
Aggregate long forward positions in foreign
currencies vis-à-vis Canadian dollar
0
0
0
0
Total net drains
-1,642
-2,345
-6,089
-10,076
Additional Information (Nominal Value)
Undrawn, unconditional credit lines with
banks headquartered outside Canada
6,000
Securities lent under repurchase agreements7
-2,676
Securities held under repurchase agreements8
3,210
Financial derivatives assets (net, marked to market)
Forwards
0
Swaps
2,783
Notes:
1. There were no sales of gold settled in July. On July 31, gold
holdings stood at 0.1 million ounces. The valuation is based on
the July 31, 2007, London p.m. fix of US$665.50 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 July, Canada bills increased by US$95 million to a level of outstanding bills of US$1,869 million. Cross-currency swaps of domestic obligations raised US$819 million, and a total of US$450 million in swaps matured.
3. "Return on investments" comprises US$118 million of interest earned on investments and a US$230-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 July, the revaluation effect was mainly due to the appreciation 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. "Foreign currency securities" include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities.
7. "Securities lent under repurchase agreements" are included in total reserves. Collateral provided in securities-lending transactions is not included in total reserves.
8. 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 September 6, 2007 (covering the period August
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 Reserves–January 1, 2005–March 31, 2006, located at www.fin.gc.ca/toce/2006/oir06_e.html.
If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance website 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)
July 31, 2007
20,067
18,494
73
984
685
40,303
June 30, 2007
19,487
18,186
71
974
695
39,413
May 31, 2007
20,088
18,271
72
972
693
40,096
April 30, 2007
19,982
18,435
74
978
714
40,183
March 31, 2007
19,548
17,991
72
976
722
39,309
February 28, 2007
16,771
17,781
72
966
720
36,310
January 31, 2007
16,679
17,379
71
954
825
35,908
December 31, 2006
15,608
17,590
69
963
833
35,063
November 30, 2006
16,423
18,152
70
965
867
36,477
October 31, 2006
16,256
17,432
66
944
945
35,643
September 30, 2006
16,755
17,166
65
941
1,090
36,017
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
Dec. 31, 2005
16,842
13,822
56
897
1,401
33,018
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
