Archived - Minister of Finance Releases Report on the Management of Canada’s Official International Reserves
October 6, 2014 – Ottawa, Ontario – Department of Finance
The Honourable Joe Oliver, Minister of Finance, today released the Report on the Management of Canada’s Official International Reserves for April 1, 2013 to March 31, 2014.
This annual report provides details on official international reserves operations, primarily related to the Exchange Fund Account (EFA). The EFA is a portfolio of assets held under the Currency Act to provide foreign currency liquidity to the Government and to promote orderly conditions for the Canadian dollar in the foreign exchange markets, if required.
- The market value of Canada’s official international reserves increased to $76.5 billion as at March 31, 2014 from $70.2 billion as at March 31, 2013. The increase in EFA assets was consistent with the Government’s commitment to maintain holdings of liquid foreign exchange reserves at or above 3 per cent of gross domestic product.
- The EFA continued to earn positive returns in 2013–14, recording a total net return of 71 basis points. This is equivalent to an unrealized mark-to-market gain of $406 million. This compares to a total return of 95 basis points (or a gain of $532 million) the previous year.
- In 2013–14, the Government of Canada broadened the list of eligible investments in the EFA to include British pound sterling-denominated assets in order to increase the liquidity and diversification of the portfolio.
- In Budget 2011, the Government announced that it would increase financial assets—cash deposits and foreign exchange reserves—in order to safeguard its ability to meet payment obligations in situations where normal access to funding markets may be disrupted or delayed. The prudential liquidity plan, announced in Budget 2011, was fully implemented on June 21, 2013, well in advance of the original target date of March 2014.
Nick Bergamini
Press Secretary
Office of the Minister of Finance
613-369-5696
Jack Aubry
Media Relations
Department of Finance
613-369-4000
