Ottawa, January 6, 2009
2009-004

Archived - Official International Reserves

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- Monthly Official International Reserves Results Archive -


The Department of Finance announced today that Canada's official international reserves increased by an amount equivalent to US$2,307 million during December to US$43,872 million.

Details on the level and composition of Canada's reserves as of December 31, 2008, 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 40,584
Deposits  953
Total securities and deposits
(liquid reserves)
41,537
   
Gold1 95
Special drawing rights (SDRs) 991
Reserve position in the IMF 1,249
Total: December 31, 2008 43,872
  November 28, 2008 41,565
Net change 2,307

Details on Deposits
Other central banks/Bank for
   International Settlements
953
Banks headquartered in Canada 0
   Of which: located abroad 0  
Banks headquartered abroad 0
   Of which: located in Canada 0       
Total 953

Details of Net Change
Reserves management operations2 128
Gains and losses on gold sales 0
Net investment gains and losses  
   Return on investments3 641
   Foreign currency debt charges -159
   Revaluation effects4 1,698
Net government operations5 0
Official intervention 0
Other transactions6     -1
Net change 2,307

Currency Composition of Deposits and Securities
US dollars 22,804
Euro 18,086
Yen      647
Total 41,537
Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)
0-1
month
1-3
months
3-12
months
Total
Foreign currency
securities7
Principal -1,655 -3,829 -5,707 -11,191
Interest -22 -99 -1,058 -1,180
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 -1,678 -3,929 -6,765 -12,372

Additional Information (Nominal Value)
Undrawn, unconditional credit lines with
   banks headquartered outside Canada
0
Securities lent under repurchase agreements8   0
Securities held under repurchase agreements9   804
Financial derivatives assets
(net, marked to market)
   Forwards   0
   Swaps   -795

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, 2008, London a.m. fix of US$870 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 increased by US$128 million to a level of outstanding bills of US$5,723 million.

3. "Return on investments" comprises US$105 million of interest earned on investments and a US$536-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 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 4, 2009 (covering the period January 2009).

___________________________________
For further information, media may contact:

Jack Aubry
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—April 1, 2007–March 31, 2008, located at: pdf www.fin.gc.ca/activty/oirrep/oir08_e.pdf



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Official International Reserves (10-Year Synopsis)
  US dollars Other currencies Gold SDRs IMF position Total

  (millions of US dollars)
December 31, 2008 22,804 18,733 95 991 1,249 43,872
November 28, 2008 22,389 16,913 89 962 1,212 41,565
October 31, 2008 23,316 16,318 80 957 731 41,402
September 30, 2008 22,987 18,130 96 1,002 765 42,980
August 29, 2008 22,305 18,450 91 1,010 738 42,594
July 31, 2008 21,767 18,988 100 1,042 762 42,659
June 30, 2008 19,964 21,967 101 1,050 773 43,855
May 30, 2008 19,919 21,763 97 1,042 767 43,588
April 30, 2008 19,892 21,912 95 1,044 659 43,602
March 31, 2008 18,896 22,329 102 1,062 668 43,057
February 29, 2008 20,013 21,805 106 1,035 654 43,613
January 31, 2008 19,804 20,662 101 1,026 668 42,261
December 31, 2007 19,257 20,057 91 1,015 661 41,081

Dec. 31, 2008 22,804 18,733 95 991 1,249 43,872
Dec. 31, 2007 19,257 20,057 91 1,015 661 41,081
Dec. 31, 2006 15,608 17,590 69 963 833 35,063
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