Release at 8:15 a.m. EST
Ottawa,  November 5, 2007
2007-085

Archived - Official International Reserves

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- Official International Reserves 2007 -

The Department of Finance announced today that Canada's official international reserves decreased by an amount equivalent to US$185 million during October to US$40,797 million.

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

36,636

Deposits

  2,388

Total securities and deposits (liquid reserves)

39,024

Gold1

86

Special drawing rights (SDRs)

1,010

Reserve position in the IMF

     677

Total: 

October 31, 2007 40,797

September 30, 2007 40,982

Net change

-185

Details on Deposits

Other central banks/Bank for International Settlements

598

Banks headquartered in Canada

0

   Of which: located abroad

0

Banks headquartered abroad

1,790

   Of which: located in Canada

0

          

Total

2,388

Details of Net Change

Reserves management operations2

-582

Gains and losses on gold sales

0

Net investment gains and losses

   Return on investments3

240

   Foreign currency debt charges

-157

   Revaluation effects4

314

Net government operations5

0

Official intervention

0

Other transactions

       0

Net change

-185

Currency Composition of Deposits and Securities

US dollars

19,218

Euro

19,292

Yen

     514

Total

39,024

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


0-1
month

1-3
months

3-12
months

Total


Foreign currency securities6

Principal

-850 -1,012 -5,551 -7,412

Interest

-84 -249 -1,267 -1,600

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

-934 -1,260 -6,818 -9,012

Additional Information (Nominal Value)

Undrawn, unconditional credit lines with banks headquartered outside Canada

0

Securities lent under repurchase agreements7

-2,663

Securities held under repurchase agreements8

981

Financial derivatives assets (net, market to market)

   Forwards

0

   Swaps

6,006

Notes:

  1. There were no sales of gold settled in October. On October 31, gold holdings stood at 0.1 million ounces. The valuation is based on the October 31, 2007, London p.m. fix of US$790 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 October, Canada bills decreased by US$141 million to a level of outstanding bills of US$1,882 million. A total of US$276 million of cross-currency swaps of domestic obligations were raised while US$718 million in swaps matured. In addition, a global bond of US$319 million matured.
  3. "Return on investments" comprises US$116 million of interest earned on investments and a US$124-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 October, 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 December 5, 2007 (covering the period November 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)

October 31, 2007

19,218

19,806

86

1,010

677

40,797

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


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