Release at 8:15 a.m. EDT
Ottawa, July 6, 2006
2006-032

Archived - Official International Reserves

Archived information

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The Department of Finance announced today that Canada's official international reserves increased by an amount equivalent to US$231 million during June to US$35,916 million.

Details on the level and composition of Canada's reserves as of June 30, 2006, 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 30,234
Deposits   3,584
Total securities and deposits (liquid reserves) 33,818
Gold1 67
Special drawing rights (SDRs) 939
Reserve position in the IMF   1,092
Total:  June 30, 2006 35,916
          May 31, 2006 35,685
Net change 231

Details on Deposits

Other central banks/Bank for International Settlements

692

Banks headquartered in Canada

0

  Of which: located abroad

0

Banks headquartered abroad

2,892

  Of which: located in Canada

0

_____

Total

3,584

Details of Net Change
Reserves management operations2 631
Gains and losses on gold sales 0
Net investment gains and losses

   Return on investments3

25

   Foreign currency debt charges

-375

   Revaluation effects4

-49
Net government operations5 0
Official intervention 0
Other transactions6      -1
Net change 231

Currency Composition of Deposits and Securities

US dollars

17,675

Euro

15,620

Yen      523

Total

33,818


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

Foreign currency securities7 Principal -771 -2,075 -2,084 -4,931
Interest -129 -236 -1,047 -1,412
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 -900 -2,312 -3,131 -6,343

Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000
Securities lent under repurchase agreements8 -2,475
Securities held under repurchase agreements9 1,589
Financial derivatives assets (net, marked to market)
  Forwards 0
  Swaps 2,647

1. There were no sales of gold settled in June. On June 30, gold holdings stood at 0.1 million ounces. The valuation is based on the June 30, 2006, London p.m. fix of US$613.50 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 June, Canada bills decreased by US$29 million to a level of outstanding bills of US$1,686 million. Cross-currency swaps of domestic obligations raised an equivalent of US$660 million.

3. "Return on investments" comprises US$91 million of interest earned on investments and a US$66-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 June, 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. Related to securities assumed by the Government of Canada, following the privatization of Petro-Canada in July 1991, and the subsequent dissolution of Petro-Canada Limited in 2001.

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 August 3, 2006 (covering the period July 2006).

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 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)

June 30, 2006

17,675

16,143

67

939

1,092

35,916

May 31, 2006

17,847

15,715

71

949

1,103

35,685

April 30, 2006

18,660

14,997

70

931

1,058

35,716

March 31, 2006

20,204

13,812

63

917

1,038

36,034

February 28, 2006

16,707

13,974

61

908

1,034

32,684

January 31, 2006

16,813

14,135

62

907

1,042

32,959

December 31, 2005

16,842

13,822

56

897

1,401

33,018

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


Dec. 31, 2004

14,426

15,740

48

925

3,327

34,466

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