Release at 8:15 a.m. EST
Ottawa, January 4, 2007
2007-001

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$1,414 million during December to US$35,063 million.

Details on the level and composition of Canada's reserves as of December 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

30,197

Deposits

  3,001

Total securities and deposits (liquid reserves)

33,198

Gold1

69

Special drawing rights (SDRs)

963

Reserve position in the IMF

     833

Total: 

December 31, 2006

35,063

November 30, 2006

 36,477

Net change

-1,414


Details on Deposits

Other central banks/Bank for International Settlements

728

Banks headquartered in Canada

0

   Of which: located abroad

0

Banks headquartered abroad

2,273

   Of which: located in Canada

0

          

Total

3,001


Details of Net Change

Reserves management operations2

-974

Gains and losses on gold sales

0

Net investment gains and losses

   Return on investments3

-125

   Foreign currency debt charges

-229

   Revaluation effects4

-87

Net government operations5

0

Official intervention

0

Other transactions6

         1

Net change

-1,414


Currency Composition of Deposits and Securities

US dollars

15,608

Euro

17,088

Yen

      502

Total

33,198

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

0-1
month

1-3
months

3-12
months

Total


Foreign currency securities7

Principal

-866

-492

-1,856

-3,214

Interest

-2

-119

-1,276

-1,397

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

-868

-611

-3,132

-4,611


Additional Information (Nominal Value)

Undrawn, unconditional credit lines with banks headquartered outside Canada

6,000

Securities lent under repurchase agreements8

-2,218

Securities held under repurchase agreements9

1,168

Financial derivatives assets (net, marked to market)

   Forwards

0

   Swaps

1,388


Notes:

  1. There were no sales of gold settled in December. On December 31, gold holdings stood at 0.1 million ounces. The valuation is based on the December 31, 2006, London a.m. fix of US$635.70 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 December, Canada bills decreased by US$336 million to a level of outstanding bills of US$1,379 million. Also, a total of US$638 million equivalent in cross-currency swaps matured.
  3. "Return on investments" comprises US$94 million of interest earned on investments and a US$219-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 December, the revaluation effect was mainly due to the appreciation 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 February 5, 2007 (covering the period January 2007).

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:

Rob Stewart
Financial Markets Division
Department of Finance
613-992-9032

David Gamble
Media Relations 
Department of Finance
613-996-8080 

For further information on the Exchange Fund Account, please consult the Report on the Management of Canada's Official International Reserves-January 1, 2005 - March 31, 2006, located at www.fin.gc.ca/toc/2006/oir06_-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)

December 31, 2006

15,608

17,590

69

963

833

35,063

November 30, 2006

16,423

18,152

70

965

867

36,477

October 31, 2006

16,256

17,432

66

944

945

35,643

September 30, 2006

16,755

17,166

65

941

1,090

36,017

August 31, 2006

17,010

16,727

68

949

1,099

35,853

July 31, 2006

17,712

16,572

69

942

1,096

36,391

June 30, 2006

17,671

16,143

67

939

1,092

35,912

May 31, 2006

17,846

15,715

71

949

1,103

35,684

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


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