Release at 8:15 a.m. EDT
Ottawa, October 3, 2007
2007-076

Archived - Official International Reserves

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- Official International Reserves 2007 -

The Department of Finance announced today that Canada's official international reserves increased by an amount equivalent to US$681 million during September to US$40,982 million.

Details on the level and composition of Canada's reserves as of September 30, 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

36,620

Deposits

  2,609

Total securities and deposits (liquid reserves)

39,229

Gold1

81

Special drawing rights (SDRs)

1,001

Reserve position in the IMF

     671

Total:

September 30, 2007 40,982
August 31, 2007 40,301
Net change 681

Details on Deposits

Other central banks/Bank for International Settlements

755

Banks headquartered in Canada

0

   Of which: located abroad

0

Banks headquartered abroad

      1,854

   Of which: located in Canada

0      
Total   2,609

Details of Net Change

Reserves management operations2

-245

Gains and losses on gold sales

0

Net investment gains and losses

   Return on investments3

131

   Foreign currency debt charges

-90

   Revaluation effects4

885

Net government operations5

0

Official intervention

0

Other transactions

        0
Net change 681

Currency Composition of Deposits and Securities
US dollars 19,452

Euro

19,261

Yen

     516
Total 39,229

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

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

Foreign currency securities6

Principal

-1,543 -1,021 -4,951 -7,515
Interest -151 -330 -1,123 -1,603

Aggregate short forward positions in foreign currencies vis-à-vis Canadian dollar

-150 0 0 -150

Aggregate long forward positions in foreign currencies vis-à-vis Canadian dollar

         0          0          0          0

Total net drains

-1,844 -1,351 -6,074 -9,268

Additional Information (Nominal Value)

Undrawn, unconditional credit lines with banks headquartered outside Canada

0

Securities lent under repurchase agreements7

-2,442

Securities held under repurchase agreements8

1,050

Financial derivatives assets
(net, marked to market)

   Forwards

   Swaps

4,632

Notes:

1. There were no sales of gold settled in September. On September 30, gold holdings stood at 0.1 million ounces. The valuation is based on the September 28, 2007, London p.m. fix of US$743 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 September, Canada bills decreased by US$160 million to a level of outstanding bills of US$2,023 million. A total of US$515 million of cross-currency swaps of domestic obligations were raised while US$600 million in swaps matured.

3. "Return on investments" comprises US$107 million of interest earned on investments and a US$24-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 September, 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 November 5, 2007 (covering the period October 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 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)

September 30, 2007

   19,452 19,777 81 1,001 671 40,982

August 31, 2007

19,989 18,594 73 985 660 40,301

July 31, 2007

20,067 18,494 73 984 685 40,303

June 30, 2007

19,487 18,186 71 974 695 39,413

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

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