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Release at 8:15 a.m. EST
Ottawa, November 3, 2005
2005-072

Archived - Official International Reserves

Archived information

Archived information is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.


The Department of Finance announced today that Canada's official international reserves increased by an amount equivalent to US$615 million during October to US$34,214 million.

Details on the level and composition of Canada's reserves as of October 31, 2005, 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 27,350
Deposits    3,773
Total securities and deposits (liquid reserves) 31,123
Gold1 51
Special drawing rights (SDRs) 898
Reserve position in the IMF    2,142
Total:  October 31, 2005 34,214
September 30, 2005*  33,599
Net change 615

Details on Deposits
Other central banks/Bank for International Settlements 1,032
Banks headquartered in Canada 0
Of which: located abroad 0
Banks headquartered abroad 2,741
Of which: located in Canada 0

           

Total 3,773

Details of Net Change
Reserves management operations2 906
Gains and losses on gold sales 0
Net investment gains and losses
  Return on investments3 -113
  Foreign currency debt charges -114
  Revaluation effects4 -64
Net government operations5 0
Official intervention 0
Other transactions           0
Net change 615

Currency Composition of Deposits and Securities
US dollars 16,909
Euro 13,259
Yen 952
Other           3
Total 31,123

* The total official international reserves figure for September 2005 has been restated from US$33,606 million to US$33,599 million. See the footnote at the end of this document for further information.

Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)6
0-1
month
1-3
months
3-12
months
Total

Foreign currency securities7 Principal -1,136 -2,845 -2,436 -6,417
Interest -57 -236 -961 -1,254
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 -1,193 -3,081 -3,397 -7,671
Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000
Securities lent under repurchase agreements8 -2,467
Securities held under repurchase agreements9 1,513
Financial derivatives assets (net, marked to market)
  Forwards 0
  Swaps 2,498

Notes:

1. There were no sales of gold settled in October. On October 31, gold holdings stood at 0.1 million ounces. The valuation is based on the October 31, 2005, London p.m. fix of US$470.75 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 October, Canada bills increased by US$274 million to a level of outstanding bills of US$2,022 million. Cross-currency swaps of domestic obligations raised an equivalent of US$632 million.

3. "Return on investments" comprises US$82 million of interest earned on investments and a US$195-million decrease 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.

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

6. Predetermined short-term drains include the Government's contractual obligations in foreign currencies related to payments of principal and interest associated with securities and commitments under swaps and forward contracts coming due during the next 12 months.

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

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

9. 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 December 5, 2005 (covering the period November 2005).

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:

Nigel Stephens
Financial Markets Division
(613) 943-1944
David Gamble
Public Affairs and Operations Division
(613) 996-8080 

For further information on the Exchange Fund Account, please consult the 2004 Report on the Management of Canada's Official International Reserves, located at www.fin.gc.ca/toc/2005/oir05_-eng.asp.

If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada website at http://www.fin.gc.ca/scripts/register-eng.asp.

Official International Reserves (10-Year Synopsis)


US dollars Other currencies Gold SDRs IMF position Total

(millions of US dollars)

October 31, 2005

16,909

14,214

51

898

2,142

34,214

September 30, 2005*

16,725

13,824

52

900

2,098

33,599

August 31, 2005*

16,878

14,354

47

907

2,113

34,299

July 31, 2005*

16,241

14,050

47

890

2,101

33,329

June 30, 2005*

17,303

14,196

48

893

2,484

34,924

May 31, 2005*

16,785

14,483

45

904

2,817

35,034

April 30, 2005*

16,419

15,045

47

916

3,176

35,603

March 31, 2005

17,080

15,043

47

916

3,164

36,250

February 28, 2005

15,947

15,434

47

925

3,208

35,561

January 31, 2005

15,138

15,246

46

905

3,255

34,590

December 31, 2004*

14,426

15,740

48

925

3,327

34,466

November 30, 2004*

14,112

15,663

49

912

3,334

34,070

October 31, 2004

17,271

15,001

46

880

3,262

36,460


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

Dec. 31, 1995

12,127

502

178

1,177

1,243

15,227

Dec. 31, 1994

9,693

526

199

1,148

910

12,475


* The total official international reserves figures for December 2003, November and December 2004, and April to September 2005 have been restated. The magnitude of the restatements is minor. The market valuation of US dollar- and euro-denominated securities held as part of Canada's reserves has been adjusted.