Release at 8:15 a.m. EST
Ottawa, December 5, 2005
2005-085

Archived - Official International Reserves

Archived information

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The Department of Finance announced today that Canada's official international reserves decreased by an amount equivalent to US$15 million during November to US$34,199 million.

Details on the level and composition of Canada's reserves as of November 30, 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 26,879
Deposits 4,333
Total securities and deposits (liquid reserves) 31,212
Gold1 54
Special drawing rights (SDRs) 894
Reserve position in the IMF 2,039
Total:  November 30, 2005 34,199
October 31, 2005  34,214
Net change -15

Details on Deposits
Other central banks/Bank for International Settlements 2,028
Banks headquartered in Canada 0
  Of which: located abroad 0
Banks headquartered abroad 2,305
  Of which: located in Canada 0             
Total 4,333

Details of Net Change
Reserves management operations2 265
Gains and losses on gold sales 0
Net investment gains and losses
   Return on investments3 63
   Foreign currency debt charges -65
   Revaluation effects4 -278
Net government operations5 0
Official intervention 0
Other transactions  0
Net change -15

Currency Composition of Deposits and Securities
US dollars 16,646
Euro 13,636
Yen 926
Other 4
Total 31,212


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 -2,780 -832 -2,570 -6,182
Interest -230 -40 -990 -1,260
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 -3,010 -872 -3,560 -7,442
Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000
Securities lent under repurchase agreements8 -2,587
Securities held under repurchase agreements9 1,009
Financial derivatives assets (net, marked to market)
  Forwards 0
  Swaps 2,921

Notes:

1. There were no sales of gold settled in November. On November 30, gold holdings stood at 0.1 million ounces. The valuation is based on the November 30, 2005, London p.m. fix of US$495.65 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 November, Canada bills decreased by US$185 million to a level of outstanding bills of US$1,837 million. Cross-currency swaps of domestic obligations raised an equivalent of US$600 million, and a total of US$150 million in cross-currency swaps matured.

3. "Return on investments" comprises US$95 million of interest earned on investments and a US$32-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 November, the revaluation effect was mainly due to the depreciation of the euro.

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 January 5, 2006 (covering the period December 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:

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 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)
November 30, 2005 16,646 14,566 54 894 2,039 34,199
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

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