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Release at 8:15 a.m. EST
Ottawa, November 5, 2002
2002-089

Official International Reserves

- Official International Reserves 2002 -

The Department of Finance announced today that Canada’s official international reserves increased by an amount equivalent to US$641 million during October to US$37,256 million.

Details on the level and composition of Canada’s reserves as of October 31, 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 29,873
Deposits   3,172
Total securities and deposits (liquid reserves) 33,045
Gold1 216
Special drawing rights (SDRs) 685
Reserve position in the IMF 3,310
Total: October 31, 2002 37,256
September 30, 2002 36,615
Net change 641
Details on Deposits
Other central banks/Bank for International Settlements 772
Banks headquartered in Canada 175
   Of which: located abroad 175  
Banks headquartered abroad 2,225
   Of which: located in Canada 225

  _____
Total 3,172
Details of Net Change  
Reserves management operations2 616
Gains and losses on gold sales -3
Net investment gains and losses  
   Return on investments3 -22
   Foreign currency debt charges -196
   Revaluation effects4 15
Net government operations5 227
Official intervention 0
Other transactions6       4
Net change 641
Currency Composition of Deposits and Securities
US dollars 19,234
Euro 12,877
Yen 930
Other          4
Total 33,045
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 -1,272 -1,775 -2,885 -5,932
Interest -121 -172 -884 -1,177
Aggregate short forward positions in foreign currencies vis-à-vis Canadian dollar -1,466 0 0 -1,466
Aggregate long forward positions in foreign currencies vis-à-vis Canadian dollar        0        0        0        0
Total net drains -2,859 -1,947 -3,769 -8,575
Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada 6,000

Securities lent under repurchase agreements9 -983

Securities held under repurchase agreements10 100

Financial derivatives assets (net, marked to market)

   Forwards

4

   Swaps

-1,713

Notes:
  1. Sales of 90,937 ounces of gold settled in October. On October 31, gold holdings stood at 0.7 million ounces. The valuation is based on the October 31, 2002, London p.m. fix of US$316.90 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 increased by US$566 million to a level of outstanding bills of US$2,422 million. Cross-currency swaps of domestic obligations raised US$50 million equivalent.
  3. "Return on investments" comprises US$104 million of interest earned on investments and a US$126-million decrease 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 December 4, 2002 (covering the period November 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:

Sandra Lavoratore
Financial Markets Division
(613) 947-3919		 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)
October 31, 2002 19,234 13,811 216 685 3,310 37,256
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
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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