Ottawa, October 15, 2012
2012-125

Archived - Minister of Finance Releases Report on the Management of Canada’s Official International Reserves

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The Honourable Jim Flaherty, Minister of Finance, today released the Report on the Management of Canada’s Official International Reserves for April 1, 2011 to March 31, 2012.

This annual report provides details on official international reserves operations, primarily related to the Exchange Fund Account (EFA), which is a portfolio of assets held under the Currency Act to provide foreign currency liquidity to the Government and to promote orderly conditions for the Canadian dollar in the foreign exchange markets, if required.

The report notes:

  • The market value of Canada’s official international reserves increased to US$69.4 billion as of March 31, 2012 from $60.6 billion as of March 31, 2011. The increase in EFA assets is consistent with the Budget 2011 commitment to increase holdings of foreign exchange reserves under the Government’s prudential liquidity plan.
  • The EFA continued to earn positive returns in 2011–12. The foreign currency assets held in the account earned an average positive spread of 45 basis points over the foreign liabilities used to fund the assets, down from 49 basis points the previous year.
  • The EFA’s investment exposure was managed prudently within acceptable limits, as specified in the Statement of Investment Policy. Exposure to weaker sovereigns and their agencies was further reduced, with new investments shifted towards securities with higher liquidity and credit quality.

For further information, media may contact:

Kathleen Perchaluk
Press Secretary
Office of the Minister of Finance
613-996-7861

Jack Aubry
Media Relations
Department of Finance
613-996-8080

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