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Release at 8:15 a.m. EDT
Ottawa, October 7, 2004
2004-062

Official International Reserves

- Official International Reserves 2004 -

The Department of Finance announced today that Canada’s official international reserves increased by an amount equivalent to US$373 million during September to US$36,260 million.

Details on the level and composition of Canada’s reserves as of September 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		30,052
Deposits		2,103
Total securities and deposits (liquid reserves)		32,155
Gold¹		45
Special drawing rights (SDRs)		862
Reserve position in the IMF		3,198
Total:	September 30, 2004	36,260
	August 31, 2004	35,887
Net change		373
Details on Deposits
Other central banks/Bank for International Settlements		601
Banks headquartered in Canada		0
Of which: located abroad		0
Banks headquartered abroad		1,502
Of which: located in Canada		0	_____
Total		2,103

Details of Net Change
Reserves management operations²	106
Gains and losses on gold sales	0
Net investment gains and losses
Return on investments³	42
Foreign currency debt charges	-86
Revaluation effects⁴	306
Net government operations⁵	0
Official intervention	0
Other transactions⁶	5
Net change	373
Currency Composition of Deposits and Securities
US dollars	17,522
Euro	13,612
Yen	1,016
Other	5
Total	32,155

		0-1 month	1-3 months	3-12 months	Total
Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)⁷

Foreign currency securities⁸	Principal	-1,170	-3,935	-3,130	-8,235
Foreign currency securities⁸	Interest	-124	-263	-710	-1,097
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		-1,294	-4,198	-3,840	-9,332

Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada			6,000
Securities lent under repurchase agreements⁹			-2,329
Securities held under repurchase agreements¹⁰			201
Financial derivatives assets (net, marked to market)
Forwards			0
Swaps			831

Notes: There were no sales of gold settled in September. On September 30, gold holdings stood at 0.1 million ounces. The valuation is based on the September 30, 2004, London p.m. fix of US$415.65 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 September Canada bills decreased by US$43 million to a level of outstanding bills of US$1,682 million. Cross-currency swaps of domestic obligations raised US$400 million, and a total of US$251 million equivalent in cross-currency swaps matured. "Return on investments" comprises US$92 million of interest earned on investments and a US$50-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. Related to securities assumed by the Government of Canada following the privatization of Petro-Canada in July 1991 and the subsequent dissolution of Petro-Canada Limited in 2001. 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 November 3, 2004 (covering the period October 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:

Harry Adams
Public Affairs and Operations Division
(613) 996-8080

Sandra Lavoratore
Financial Markets Division
(613) 947-3919

For further information on the Exchange Fund Account, please consult the 2003 Report on the Management of Canada’s Official International Reserves, 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, 2004	17,522	14,633	45	862	3,198	36,260
August 31, 2004	17,018	14,623	44	857	3,345	35,887
July 31, 2004	16,744	14,299	43	845	3,267	35,198
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

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: 2004-10-07			Important Notices