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Release at 8:15 a.m. EST
Ottawa, December 3, 2004
2004-073

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$2,389 million during November to US$34,066 million.

Details on the level and composition of Canada’s reserves as of November 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		27,882
Deposits		1,889
Total securities and deposits (liquid reserves)		29,771
Gold¹		49
Special drawing rights (SDRs)		912
Reserve position in the IMF		3,334
Total:	November 30, 2004	34,066
	October 31, 2004*	36,455
Net change		-2,389

* Please note that the total official international reserves figure for October 2004 has been restated from US$36,457 million to US$36,455 million. See the footnote at the end of this document for further information.

Details on Deposits
Other central banks/Bank for International Settlements	1,038
Banks headquartered in Canada	0
Of which: located abroad	0
Banks headquartered abroad	851
Of which: located in Canada	0	_____
Total	1,889

Details of Net Change
Reserves management operations²	-3,122
Gains and losses on gold sales	0
Net investment gains and losses
Return on investments³	182
Foreign currency debt charges	-111
Revaluation effects⁴	662
Net government operations⁵	0
Official intervention	0
Other transactions	0
Net change	-2,389
Currency Composition of Deposits and Securities
US dollars	14,108
Euro	14,571
Yen	1,088
Other	4
Total	29,771

		0-1 month	1-3 months	3-12 months	Total
Predetermined Short-Term Drains on Foreign Currency Reserves (Nominal Value)⁶

Foreign currency securities⁷	Principal	-952	-736	-3,265	-4,953
Foreign currency securities⁷	Interest	-152	-85	-949	-1,186
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		-1,104	-821	-4,214	-6,139

Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada			6,000
Securities lent under repurchase agreements⁸			-2,621
Securities held under repurchase agreements⁹			104
Financial derivatives assets (net, marked to market)
Forwards			0
Swaps			1,447

Notes: There were no sales of gold settled in November. On November 30, gold holdings stood at 0.1 million ounces. The valuation is based on the November 30, 2004, London p.m. fix of US$453.40 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 November, Canada bills increased by US$40 million to a level of outstanding bills of US$1,553 million. A total of US$100 million in cross-currency swaps matured. In addition, Euro Medium-Term Notes of US$1,062 million and a global bond of US$2 billion matured. "Return on investments" comprises US$101 million of interest earned on investments and a US$81-million increase 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. In November, the appreciation of the euro accounted for most of the revaluation effect. "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 January 6, 2005 (covering the period December 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

David Gamble
Public Affairs and Operations Division
(613) 996-8080

For further information on the Exchange Fund Account, please consult the 2003 Report on the Management of Canada’s Official International Reserves, located at http://www.fin.gc.ca/toce/2004/oir04_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)
November 30, 2004	14,108	15,663	49	912	3,334	34,066
October 31, 2004*	17,266	15,001	46	880	3,262	36,455
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*	16,743	14,299	43	845	3,267	35,197
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*	15,648	15,840	43	847	3,705	36,083
January 31, 2004*	15,684	15,967	44	835	3,836	36,366
December 31, 2003	15,576	15,961	45	838	3,848	36,268
November 30, 2003*	15,878	15,364	69	812	3,968	36,091

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

*Please note that the total official international reserves figures for November 2003 and for January, February, July and October 2004 have been restated. The magnitude of the restatements is minor. The valuation of securities held as part of Canada's reserves has been adjusted from the last calendar day of the month to the last business day of the month, consistent with standards endorsed by the IMF.



		Last Updated: 2006-01-04			Important Notices