Release at 8:15 a.m. EST Ottawa, February 5, 2008 2008-009-
Official
International Reserves 2008 -
The Department of Finance announced today that Canada’s official international reserves increased by an amount equivalent to US$1,180 million during January to US$42,261 million.
Details on the level and composition of Canada’s reserves as of January 31, 2008, 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
37,721
Deposits
2,745
Total securities and deposits (liquid reserves)
40,466
Gold1
101
Special drawing rights (SDRs)
1,026
Reserve position in the IMF
668
Total:
January 31, 2008
42,261
December 31, 2007
41,081
Net change
1,180
Details on Deposits
Other central banks/Bank for International Settlements
655
Banks headquartered in Canada
0
Of which: located abroad
0
Banks headquartered abroad
2,090
Of which: located in Canada
0
Total
2,745
Details of Net Change
Reserves management operations2
92
Gains and losses on gold sales
0
Net investment gains and losses
Return on investments3
670
Foreign currency debt charges
-11
Revaluation effects4
428
Net government operations5
0
Official intervention
0
Other transactions
1
Net change
1,180
Currency Composition of Deposits and Securities
US dollars
19,804
Euro
20,103
Yen
559
Total
40,466
Predetermined Short-Term Drains on Foreign Currency Reserves
(Nominal Value)
0-1
month
1-3
months
3-12
months
Total
Foreign currency securities6
Principal
-821
-1,671
-7,533
-10,025
Interest
-9
-198
-1,265
-1,472
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
-830
-1,869
-8,798
-11,497
Additional Information (Nominal Value)
Undrawn, unconditional credit lines with
banks headquartered outside Canada
0
Securities lent under repurchase agreements7
-2,580
Securities held under repurchase agreements8
1,286
Financial derivatives assets (net, marked to market)
Forwards
0
Swaps
3,435
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, 2008, London p.m. fix of US$923 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$36 million to a level of outstanding bills of US$1,965 million. A total of US$100 million of cross-currency swaps of domestic obligations were raised while US$44 million in swaps matured. In addition, a euro medium-term note of US$44 million matured.
3. "Return on investments" comprises US$113 million of interest earned on investments and a US$557-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 January, 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 March 5, 2008 (covering the period February 2008).
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—April 1, 2006–March 31, 2007, located at www.fin.gc.ca/toce/2007/oir07_e.html.
