Release at 8:15 a.m. EST
Ottawa, March 3, 2005
2005-018

Archived - Official International Reserves

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The Department of Finance announced today that Canada's official international reserves increased by an amount equivalent to US$971 million during February to US$35,561 million.

Details on the level and composition of Canada's reserves as of February 28, 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

29,316

Deposits

  2,065

Total securities and deposits (liquid reserves)

31,381

Gold1

47

Special drawing rights (SDRs)

925

Reserve position in the IMF

  3,208

Total: 

February 28, 2005

35,561

January 31, 2005

34,590

Net change

971

Details on Deposits

Other central banks/Bank for International Settlements

661

Banks headquartered in Canada

0

  Of which: located abroad

0  

Banks headquartered abroad

1,404

  Of which: located in Canada

0  

_____

Total

2,065


Details of Net Change

Reserves management operations2

813

Gains and losses on gold sales

0

Net investment gains and losses

  Return on investments3

-62

  Foreign currency debt charges

-25

  Revaluation effects4

245

Net government operations5

0

Official intervention

0

Other transactions

     0

Net change

971

Currency Composition of Deposits 
and Securities

US dollars

15,947

Euro

14,357

Yen

1,072

Other

          5

Total

31,381


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

-1,365

-925

-4,730

-7,020

Interest

-106

-122

-994

-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

-1,471

-1,047

-5,724

-8,242


Additional Information (Nominal Value)

Undrawn, unconditional credit lines with banks headquartered outside Canada

6,000

Securities lent under repurchase agreements8

-2,268

Securities held under repurchase agreements9

725

Financial derivatives assets (net, marked to market)

  Forwards

0

  Swaps

793


Notes:

1. There were no sales of gold settled in February. On February 28, gold holdings stood at 0.1 million ounces. The valuation is based on the February 28, 2005, London p.m. fix of US$435.45 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 February, Canada bills increased by US$313 million to a level of outstanding bills of US$1,803 million. Cross-currency swaps of domestic obligations raised US$500 million.

3. "Return on investments" comprises US$91 million of interest earned on investments and a US$153-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. In February the appreciation of the euro accounted for most of the revaluation effect.

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 April 5, 2005 (covering the period March 2005).

A list of upcoming release dates is posted on the Department of Finance Web site located at: www.fin.gc.ca/invest_x/releaseDates_e.asp.

___________________
For further information:

Sandra Lavoratore
Financial Markets Division
(613) 947-3919

David Gamble
Public Affairs and Operations Division
(613) 996-8080 

For further information on the Exchange Fund Account, please consult the 2003 Report on the Management of Canada's Official International Reserves, located at http://www.fin.gc.ca/toc/2004/oir04_-eng.asp.

If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site 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)

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

14,427

15,740

48

925

3,327

34,467

November 30, 2004

14,113

15,663

49

912

3,334

34,071

October 31, 2004

17,271

15,001

46

880

3,262

36,460

September 30, 2004

17,527

14,633

45

862

3,198

36,265

August 31, 2004

17,022

14,623

44

857

3,345

35,891

July 31, 2004

16,747

14,299

43

845

3,267

35,201

June 30, 2004

16,646

14,545

43

849

3,335

35,418

May 31, 2004

16,358

15,315

43

851

3,411

35,978

April 30, 2004

15,712

15,112

42

832

3,415

35,113

March 31, 2004

16,194

15,723

46

847

3,602

36,412

February 29, 2004

15,648

15,840

43

847

3,705

36,083


Dec. 31, 2003

15,576

15,961

45

838

3,848

36,268

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