Ottawa, October 25, 2013
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, 2012 to March 31, 2013.
This annual report provides details on official international reserves operations, primarily related to the Exchange Fund Account (EFA). The EFA 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 $70.2 billion as at March 31, 2013 from $69.4 billion as at March 31, 2012. The increase in EFA assets, which totalled $65.8 billion as at March 31, 2013, was consistent with the Government’s commitment to maintain holdings of liquid foreign exchange reserves at or above 3 per cent of gross domestic product.
- The EFA continued to earn positive returns in 2012–13, recording a total net return of 95 basis points. This is equivalent to an unrealized mark-to-market gain of $532 million.
- In Budget 2011, the Government announced that it would increase financial assets—cash deposits and foreign exchange reserves—in order to safeguard its ability to meet payment obligations in situations where normal access to funding markets may be disrupted or delayed. In February 2013, the Government announced that all elements of the prudential liquidity plan were on track to be fully implemented by the summer of 2013, well in advance of the original target date of March 2014.
For further information, media may contact:
Office of the Minister of Finance
Department of Finance