Release at 8:15 a.m. EDT
Ottawa, August 3, 2006
2005-037

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$479 million during July to US$36,395 million.

Details on the level and composition of Canada’s reserves as of July 31, 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 30,518
Deposits     3,770
Total securities and deposits (liquid reserves) 34,288
Gold1 69
Special drawing rights (SDRs) 942
Reserve position in the IMF     1,096
Total:  July 31, 2006 36,395
June 30, 2006   35,916
Net change 479

Details on Deposits
Other central banks/Bank for
International Settlements
625
Banks headquartered in Canada 0
  Of which: located abroad 0
Banks headquartered abroad 3,145
  Of which: located in Canada 0 ______

Total

3,770

Details of Net Change
Reserves management operations2 372
Gains and losses on gold sales 0
Net investment gains and losses
  Return on investments3 250
  Foreign currency debt charges -135
  Revaluation effects4 -8
Net government operations5 0
Official intervention 0
Other transactions           0
Net change 479

Currency Composition of Deposits and Securities
US dollars 17,716
Euro 16,049
Yen       523

Total

34,288

Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)

0-1
month
1-3
months
3-12
months
Total

Foreign currency securities6 Principal -1,608 -1,427 -1,824 -4,859
Interest -36 -206 -1,179 -1,421
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 -1,644 -1,633 -3,003 -6,280
Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000
Securities lent under repurchase agreements7 -2,460
Securities held under repurchase agreements8 1,861
Financial derivatives assets (net, marked to market)

  Forwards

0

  Swaps

2,519

Notes:
1. There were no sales of gold settled in July. On July 31, gold holdings stood at 0.1 million ounces. The valuation is based on the July 31, 2006, London p.m. fix of US$632.50 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 July, Canada bills decreased by US$78 million to a level of outstanding bills of US$1,608 million. Cross-currency swaps of domestic obligations raised an equivalent of US$450 million.

3. "Return on investments" comprises US$98 million of interest earned on investments and a US$152-million increase 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. "Foreign currency securities" include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities.

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

8. 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 September 6, 2006 (covering the period August 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, media may contact:

Sandra Lavoratore
Financial Markets Division
Department of Finance
613-947-3919
David Gamble
Media Relations
Department of Finance
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)
July 31, 2006 17,716 16,572 69 942 1,096 36,395
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

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