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Release at 8:15 a.m. EDT
Ottawa, October 3, 2002
2002-081

Official International Reserves

- Official International Reserves 2002 -

The Department of Finance announced today that Canada’s official international reserves decreased by an amount equivalent to US$481 million during September to US$36,615 million.

Details on the level and composition of Canada’s reserves as of September 30, 2002, 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 29,478
Deposits   2,885
Total securities and deposits (liquid reserves) 32,363
Gold1 250
Special drawing rights (SDRs) 686
Reserve position in the IMF    3,316
Total: September 30, 2002 36,615
August 31, 2002 37,096
Net change -481
Details on Deposits
Other central banks/Bank for International Settlements 684
Banks headquartered in Canada 200
   Of which: located abroad 200
Banks headquartered abroad 2,001
   Of which: located in Canada 600  ____
Total 2,885
Details of Net Change  
Reserves management operations2 -987
Gains and losses on gold sales 0
Net investment gains and losses  
   Return on investments3 430
   Foreign currency debt charges -214
   Revaluation effects4 32
Net government operations5 254
Official intervention 0
Other transactions6         4
Net change -481
Currency Composition of Deposits and Securities
US dollars 18,426
Euro 13,001
Yen 931
Other           5
Total 32,363
Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)7
  0-1 month 1-3 months 3-12 months Total
Foreign currency securities8  Principal -817 -1,756 -2,666 -5,239
Interest -117 -245 -820 -1,182
Aggregate short forward positions in foreign currencies vis-à-vis Canadian dollar -1,371 -95 0 -1,466
Aggregate long forward positions in foreign currencies vis-à-vis Canadian dollar         0         0         0         0
Total net drains -2,305 -2,096 -3,486 -7,887
Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000    
Securities lent under repurchase agreements9 -1,144    
Securities held under repurchase agreements10 108    
Financial derivatives assets (net, marked to market)      
   Forwards -36    
   Swaps -1,187    
Notes:        

  1. There were no sales of gold settled in September. On September 30, gold holdings stood at 0.8 million ounces. The valuation is based on the September 30, 2002, London p.m. fix of US$323.70 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$50 million to a level of outstanding bills of US$1,856 million. Cross-currency swaps of domestic obligations raised US$300 million equivalent, and a total of US$1,237 million in cross-currency swaps matured in September.

  3. “Return on investments” comprises US$102 million of interest earned on investments and a US$328-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.

  5. “Net government operations” are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves.

  6. Related to repayment of a loan made to Thailand in 1998.

  7. Predetermined short-term drains include the Government’s contractual obligations in foreign currencies related to payments of principal and interest associated with securities and commitments under swaps and forward contracts coming due during the next 12 months.

  8. “Foreign currency securities” include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities.

  9. “Securities lent under repurchase agreements” are included in total reserves. Collateral provided in securities-lending transactions is not included in total reserves.

  10. 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, 2002 (covering the period October 2002). A list of upcoming release dates is posted on the Department of Finance Web site located at: www.fin.gc.ca/invest_x/releaseDates_e.asp

___________________
For further information:

Nigel Stephens
Financial Markets Division
(613) 943-1944		 Jean-Michel Catta
Public Affairs and Operations Division
(613) 996-8080

For further information on the Exchange Fund Account, please consult the 2001 Annual Report to Parliament on the Operations of the Exchange Fund Account by the Minister of Finance and Report of the Auditor General to the Minister of Finance on the Examination of the Accounts and Financial Statements of the Exchange Fund Account, located at www.fin.gc.ca/purl/efa-e.html.

If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site at http://www.fin.gc.ca/scripts/register_e.asp.

Official International Reserves (10-Year Synopsis)
  US dollars Other currencies Gold SDRs IMF position Total
  (millions of US dollars)
September 30, 2002 18,426 13,937 250 686 3,316 36,615
August 31, 2002 18,836 13,931 242 688 3,399 37,096
July 31, 2002 18,512 13,678 262 671 3,287 36,410
June 30, 2002 19,078 13,753 274 675 3,410 37,190
May 31, 2002 19,019 12,889 281 655 2,832 35,676
April 30, 2002 18,858 12,393 266 632 2,807 34,956
March 31, 2002 18,495 11,679 288 621 2,946 34,029
February 28, 2002 19,051 11,308 284 619 2,918 34,180
January 31, 2002 19,147 10,767 297 607 2,826 33,644
December 31, 2001 19,748 10,736 291 614 2,859 34,248
November 30, 2001 20,067 10,670 305 619 2,924 34,585
October 31, 2001 20,479 10,520 308 610 3,038 34,955
September 30, 2001 20,017 10,187 335 616 3,064 34,219
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
Dec. 31, 1995 12,127 502 178 1,177 1,243 15,227
Dec. 31, 1994 9,693 526 199 1,148 910 12,475
Dec. 31, 1993 9,950 521 292 1,064 949 12,776
Dec. 31, 1992 7,864 1,518 478 1,039 1,010 11,909
Dec. 31, 1991 9,440 4,639 649 1,582 592 16,901
Last Updated: 2004-02-03

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