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Release at 8:15 a.m. EDT
Ottawa, July 6, 2004
2004-039

Official International Reserves

- Official International Reserves 2004 -

The Department of Finance announced today that Canada’s official international reserves decreased by an amount equivalent to US$560 million during June to US$35,416 million.

Details on the level and composition of Canada’s reserves as of June 30, 2004, 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		28,955
Deposits		2,234
Total securities and deposits (liquid reserves)		31,189
Gold¹		43
Special drawing rights (SDRs)		849
Reserve position in the IMF		3,335
Total:	June 30, 2004	35,416
	May 31, 2004	35,976
Net change		-560
Details on Deposits
Other central banks/Bank for International Settlements		834
Banks headquartered in Canada		0
Of which: located abroad		0
Banks headquartered abroad		1,400
Of which: located in Canada		0
Total		2,234

Details of Net Change
Reserves management operations²		-355
Gains and losses on gold sales		0
Net investment gains and losses
Return on investments³		65
Foreign currency debt charges		-275
Revaluation effects⁴		5
Net government operations⁵		0
Official intervention		0
Other transactions		0
Net change		-560
Currency Composition of Deposits and Securities
US dollars		16,644
Euro		13,508
Yen		1,027
Other		10
Total		31,189

Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)⁶
		0-1 month	1-3 months	3-12 months	Total
Foreign currency securities⁷	Principal	-1,106	-1,361	-3,952	-6,419
Foreign currency securities⁷	Interest	-169	-235	-767	-1,171
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		-1,275	-1,596	-4,719	-7,590
Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada			6,000
Securities lent under repurchase agreements⁸			-2,352
Securities held under repurchase agreements⁹			209
Financial derivatives assets (net, marked to market)
Forwards			0
Swaps			-173

Notes:
There were no sales of gold settled in June. On June 30, gold holdings stood at 0.1 million ounces. The valuation is based on the June 30, 2004, London p.m. fix of US$395.80 per ounce. 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 June Canada bills increased by US$168 million to a level of outstanding bills of US$1,943 million. Cross-currency swaps of domestic obligations raised US$500 million, and a total of US$1,023 million equivalent in cross-currency swaps matured. "Return on investments" comprises US$91 million of interest earned on investments and a US$26-million decrease in the market value of securities resulting from changes in interest rates. "Revaluation effects" reflect changes in the market value of reserve assets resulting from movements in exchange rates. "Net government operations" are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves. 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. "Foreign currency securities" include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities. "Securities lent under repurchase agreements" are included in total reserves. Collateral provided in securities-lending transactions is not included in total reserves. 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 August 5, 2004 (covering the period July 2004).

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

Andrée Houde
Public Affairs and Operations Division
(613) 996-8080

For further information on the Exchange Fund Account, please consult the 2002 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)
June 30, 2004	16,644	14,545	43	849	3,335	35,416
May 31, 2004	16,356	15,315	43	851	3,411	35,976
April 30, 2004	15,712	15,112	42	832	3,415	35,113
March 31, 2004	16,194	15,723	46	847	3,602	36,412
February 29, 2004	15,546	15,842	43	847	3,705	35,983
January 31, 2004	15,685	15,968	44	835	3,836	36,368
December 31, 2003	15,576	15,961	45	838	3,848	36,268
November 30, 2003	15,879	15,365	69	812	3,968	36,093
October 31, 2003	16,145	14,902	67	795	3,947	35,856
September 30, 2003	16,382	15,464	67	794	3,971	36,678
August 31, 2003	16,134	14,541	65	765	3,785	35,290
July 31, 2003	15,967	14,831	110	761	4,096	35,765
June 30, 2003	16,207	15,469	107	766	4,150	36,699

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
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



		Last Updated: 2004-07-06			Important Notices