Department of Finance of Canada

12/03/2021 | Press release | Distributed by Public on 12/03/2021 07:30

Official International Reserves

- All 2021 Official International Reserves -

The Department of Finance Canada announced today that Canada's official international reserves decreased by an amount equivalent to US$545 million during November to US$103,624 million. This was driven by reserves management funding operations (-US$163 million)Footnote 1 and a net loss in investments (-US$382 million)Footnote 2.

Details on the level and composition of Canada's reserves as of November 30, 2021, 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.

Table 1
Foreign currency reserves
Amount
Millions of US dollars
Securities 72,829
Deposits 2,307
Total securities and deposits (liquid reserves): 75,136
Gold 0
Special drawing rights (SDRs) 24,015
Reserve position in the International Monetary Fund (IMF) 4,473
Total:
November 30, 2021
103,624
October 29, 2021
104,169
Net change: -545
Table 2
Details on deposits
Amount
Millions of US dollars
Other central banks/Bank for International Settlements 2,307
Banks headquartered in Canada 0
Of which: located abroad
0
Banks headquartered abroad 0
Of which: located in Canada
0
Total: 2,307
Table 3
Details of net change
Amount
Millions of US dollars
Reserves management operationsFootnote 1 -163
Gains and losses on gold sales 0
Net investment gains and losses:
Return on investmentsFootnote 3
348
Foreign currency debt charges
-87
Revaluation effectsFootnote 4
-643
Net government operationsFootnote 5 0
Official intervention 0
Other transactions 0
Net change: -545
Table 4
Currency composition of deposits and securities
Amount
Millions of US dollars
US dollar 52,102
Euro 11,430
Pound sterling 6,408
Yen 5,196
Total: 75,136
Table 5
Predetermined short-term drains on foreign currency reserves (nominal value)
Millions of US dollars
0 to 1 month 1 to 3 months 3 to 12 months Total
Foreign currency securities:Footnote 6
Principal
-1,621 -5,347 -7,588 -14,556
Interest
-56 -119 -529 -705
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: -1,677 -5,466 -8,117 -15,260
Table 6
Additional information (nominal value)
Amount
Millions of US dollars
Undrawn, unconditional credit lines with banks headquartered outside Canada 0
Securities lent under repurchase agreementsFootnote 7 -246
Securities held under repurchase agreementsFootnote 8 1,062
Financial derivatives assets (net, marked to market):
Forwards
-7
Swaps
-1,103

Footnotes

Footnote 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 November, Canada bills decreased by US$742 million to a level of outstanding bills of US$3,293 million. An equivalent of US$1,481 million in cross-currency swaps was raised while US$902 million in cross-currency swaps matured during the month.

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Footnote 2

Net investment gains and losses include return on investments, foreign currency debt charges and revaluation effects.

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Footnote 3

"Return on investments" comprises US$57 million of interest earned on investments and a US$291 million increase in the market value of securities.

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Footnote 4

"Revaluation effects" reflect changes in the market value of reserve assets resulting from movements in exchange rates. In November, the revaluation effect was mainly due to the depreciation of the euro and the pound sterling.

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Footnote 5

"Net government operations" are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves.

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Footnote 6

"Foreign currency securities" include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities.

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Footnote 7

"Securities lent under repurchase agreements" are included in total reserves. Collateral provided in securities lending transactions is not included in total reserves.

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Footnote 8

Cash invested under repurchase agreements is included in total reserves. Collateral provided in securities lending transactions is not included in total reserves.

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Table 7
Official international reserves (10-year synopsis)
Millions of US dollars
Date US dollars Other currencies Gold SDRs IMF position Total
November 30, 2021 52,102 23,034 0 24,015 4,473 103,624
October 29, 2021 51,726 23,746 0 24,267 4,430 104,169
September 29, 2021 53,264 24,671 0 23,910 4,425 106,270
August 31, 2021 52,526 25,435 0 24,091 4,487 106,539
July 30, 2021 51,555 25,458 0 8,685 4,501 90,199
June 30, 2021 50,835 25,103 0 8,670 4,445 89,053
May 31, 2021 50,458 25,591 0 8,774 4,382 89,205
April 30, 2021 45,429 25,580 0 8,739 4,489 84,237
March 31, 2021 44,708 25,545 0 8,625 4,497 83,375
February 26, 2021 46,707 26,210 0 8,760 4,648 86,325
January 29, 2021 49,007 26,666 0 8,781 4,653 89,107
December 31, 2020 49,236 27,584 0 8,886 4,722 90,428
November 30, 2020 51,179 27,301 0 8,859 4,403 91,742
December 31, 2020 49,236 27,584 0 8,886 4,722 90,428
December 31, 2019 48,646 24,967 0 8,527 3,157 85,297
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

Future release dates

The next release is January 6, 2022 (covering the period of December 2021).

For further information on the Exchange Fund Account, please consult the Report on the Management of Canada's Official International Reserves-April 1, 2019 - March 31, 2020.

Contacts

For further information, media may contact:

Media Relations
Department of Finance Canada
[email protected]
613-369-4000