Official International Reserves

Press Release

August 06, 2019

The Department of Finance Canada announced today that Canada’s official international reserves decreased by an amount equivalent to US$1,040 million during July to US$85,260 million. This was driven by reserves management funding operations (-US$54 million)¹, and a net loss in investments (US$986 million)².

Details on the level and composition of Canada’s reserves as of July 31, 2019, 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

	Millions of US dollars
Securities	68,963
Deposits	4,805
Total securities and deposits (liquid reserves):	73,768
Gold	0
Special drawing rights (SDRs)	8,344
Reserve position in the IMF	3,148
Total:
July 31, 2019	85,260
June 28, 2019	86,300
Net change:	-1,040

Details on Deposits

	Millions of US dollars
Other central banks/Bank for International Settlements	4,805
Banks headquartered in Canada	0
Of which: located abroad	0
Banks headquartered abroad	0
Of which: located in Canada	0
Total:	4,805

Details of Net Change

	Millions of US dollars
Reserves management operations1	-54
Gains and losses on gold sales	0
Net investment gains and losses:
Return on investments3	-34
Foreign currency debt charges	-131
Revaluation effects4	-821
Net government operations5	0
Official intervention	0
Other transactions	0
Net change:	-1,040

Currency Composition of Deposits and Securities

Millions of US dollars
US dollar	50,189
Euro	13,745
Pound sterling	7,243
Yen	2,591
Total:	73,768

Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)

	Millions of US dollars
	0-1 month	1-3 months	3-12 monthsTotal
Foreign currency securities6:
Principal	-1,401	-1,641	-8,556	-11,598
Interest	-85	-241	-896	-1,222
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:	-1,486	-1,882	-9,452	-12,820

Additional Information (Nominal Value)

	Millions of US dollars
Undrawn, unconditional credit lines with banks headquartered outside Canada	0
Securities lent under repurchase agreements7	0
Securities held under repurchase agreements8	4,192
Financial derivatives assets (net, marked to market):
Forwards	26
Swaps	-4,530

NOTES:

1. Net change in securities and deposits resulting from foreign currency funding activities of the Government. Foreign reserves are managed under an asset-liability matching framework. Therefore, when a foreign currency liability matures, assets are used to repay the principal, leading to a decrease in reserves. During July, Canada bills increased by US$397.3 million to a level of outstanding bills of US$2,141.7 million. An equivalent of US$643.9 million in cross-currency swaps was raised during the month while US$1,095.5 million on cross-currency swaps matured during the month.
2. Net investment gains and losses include return on investments, foreign currency debt charges and revaluation effects.
3. “Return on investments” comprises US$101 million of interest earned on investments and a US$135 million decrease in the market value of securities.
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 depreciation of the euro and the pound sterling.
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.

Official International Reserves (10-Year Synopsis)

Millions of US dollars
Date	US dollars	Other currencies	Gold	SDRs	IMF position	Total
July 31, 2019	50,189	23,579	0	8,344	3,148	85,260
June 28, 2019	50,205	24,722	0	8,454	2,919	86,300
May 31, 2019	50,394	24,009	0	8,353	2,948	85,704
April 30, 2019	49,362	24,040	0	8,464	2,966	84,832
March 29, 2019	48,271	24,268	0	8,209	2,653	83,401
February 28, 2019	49,023	24,459	0	8,266	2,672	84,420
January 31, 2019	52,450	24,458	0	8,277	2,687	87,872
December 31, 2018	49,090	24,189	0	7,941	2,706	83,926
November 30, 2018	47,932	23,703	0	7,891	2,482	82,008
October 31, 2018	48,930	22,812	0	7,866	2,480	82,088
September 28, 2018	47,752	22,682	0	7,892	2,357	80,683
August 31, 2018	48,173	22,771	0	7,926	2,368	81,238
July 31, 2018	48,232	23,268	0	7,943	2,374	81,817
December 31, 2018	49,090	24,189	0	7,941	2,706	83,926
December 29, 2017	51,343	25,308	0	7,975	1,999	86,625
December 30, 2016	52,496	20,453	0	7,578	2,191	82,718
December 31, 2015	48,229	20,848	58	7,899	2,719	79,753
December 31, 2014	43,756	19,000	116	8,164	3,664	74,700
December 31, 2013	39,514	18,916	115	8,675	4,717	71,937
December 31, 2012	35,622	19,621	181	8,754	4,368	68,546
December 30, 2011	32,826	19,985	167	8,966	3,875	65,819
December 31, 2010	26,677	18,211	153	9,054	3,056	57,151
December 31, 2009	23,879	18,723	119	9,212	2,424	54,357
December 31, 2008	22,804	18,733	95	991	1,249	43,872

Future Release Dates

The next release is September 5, 2019 (covering the period of August 2019).

For further information on the Exchange Fund Account, please consult the Report on the Management of Canada’s Official International Reserves—April 1, 2017 – March 31, 2018.

For further information, media may contact:

Media Relations
Department of Finance Canada
fin.media-media.fin@canada.ca
613-369-4000

IBF4