Release at 8:15 a.m. EST
Ottawa, March 5, 2007
2007-019

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$402 million during February to US$36,310 million.

Details on the level and composition of Canada’s reserves as of February 28, 2007, 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 31,569
Deposits   2,983
Total securities and deposits (liquid reserves) 34,552
Gold1 72
Special drawing rights (SDRs) 966
Reserve position in the IMF       720
Total:  February 28, 2007 36,310
January 31, 2007  35,908

Net change

402

Details on Deposits
Other central banks/Bank for International Settlements 506
Banks headquartered in Canada 0
   Of which: located abroad 0
Banks headquartered abroad 2,477
   Of which: located in Canada 0          

Total

2,983

Details of Net Change
Reserves management operations2 -159
Gains and losses on gold sales 0
Net investment gains and losses
   Return on investments3 288
   Foreign currency debt charges -12
   Revaluation effects4 285
Net government operations5 0
Official intervention 0
Other transactions     0

Net change

402

Currency Composition of Deposits and Securities
US dollars 16,771
Euro 17,275
Yen      506

Total

34,552

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


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

Foreign currency securities6 Principal -835 -643 -1,923 -3,401
Interest -96 -148 -1,188 -1,432
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 -931 -791 -3,111 -4,833
 
Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000
Securities lent under repurchase agreements7 -2,397
Securities held under repurchase agreements8 1,804
Financial derivatives assets (net, marked to market)
   Forwards 0
   Swaps 1,236

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, 2007, London p.m. fix of US$664.20 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 decreased by US$259 million to a level of outstanding bills of US$1,517 million. Cross-currency swaps of domestic obligations raised US$100 million.

3. "Return on investments" comprises US$101 million of interest earned on investments and a US$187-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. In February, 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. "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 April 4, 2007 (covering the period March 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:

Clifton Lee-Sing
Financial Markets Division Department of Finance
613-943-1944
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

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, 2007 16,771 17,781 72 966 720 36,310
January 31, 2007 16,679 17,379 71 954 825 35,908
December 29, 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

Dec. 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