Release at 8:15 a.m. EDT
Ottawa, June 5, 2007
2007-044

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$87 million during May to US$40,096 million.

Details on the level and composition of Canada's reserves as of May 31, 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 32,751
Deposits     5,608
Total securities and deposits (liquid reserves) 38,359
Gold1 72
Special drawing rights (SDRs) 972
Reserve position in the IMF        693
Total: May 31, 2007 40,096
April 30, 2007   40,183
Net change -87

Details on Deposits
Other central banks/Bank for International Settlements 1,463
Banks headquartered in Canada 0
   Of which: located abroad 0
Banks headquartered abroad 4,145
   Of which: located in Canada 0              
Total 5,608

Details of Net Change
Reserves management operations2 383
Gains and losses on gold sales 0
Net investment gains and losses  
   Return on investments3 -115
   Foreign currency debt charges -81
   Revaluation effects4 -274
Net government operations5 0
Official intervention 0
Other transactions      0
Net change -87

Currency Composition of Deposits and Securities
US dollars 20,088
Euro 17,783
Yen         488
Total 38,359

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

Foreign currency securities6 Principal -1,957 -803 -1,452 -4,212
Interest -578 -135 -789 -1,502
Aggregate short forward positions in foreign currencies vis-à-vis Canadian dollar 0 -1,050 -750 -1,800
Aggregate long forward positions in foreign currencies vis-à-vis Canadian dollar          0          0          0          0
Total net drains -2,535 -1,988 -2,991 -7,514

Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000
Securities lent under repurchase agreements7 -2,157
Securities held under repurchase agreements8 3,347
Financial derivatives assets (net, marked to market)
   Forwards
   Swaps 3,382

Notes:

1. There were no sales of gold settled in May. On May 31, gold holdings stood at 0.1 million ounces. The valuation is based on the May 31, 2007, London p.m. fix of US$659.10 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 May, Canada bills increased by US$155 million to a level of outstanding bills of US$1,561 million. US$300 million of forwards matured and US$528 million of cross-currency swaps of domestic obligations were raised.

3. "Return on investments" comprises US$120 million of interest earned on investments and a US$235-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 May, 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. "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 July 5, 2007 (covering the period June 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)
May 31, 2007 20,088 18,271 72 972 693 40,096
April 30, 2007 19,982 18,435 74 978 714 40,183
March 31, 2007 19,548 17,991 72 976 722 39,309
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 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

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