Français	Contact Us	Help	Search	Canada site

Home	What's New	Site Map	Glossary	HotLinks

About Us	FAQ	Media Room	Publications	Legislation

Immediate release
Ottawa, June 5, 2006
2006-022

Official International Reserves

- Official International Reserves 2006 -

The Department of Finance announced today that Canada’s official international reserves decreased by an amount equivalent to US$31 million during May to US$35,685 million.

Details on the level and composition of Canada’s reserves as of May 31, 2006, 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		29,602
Deposits		3,960
Total securities and deposits (liquid reserves)		33,562

Gold¹		71
Special drawing rights (SDRs)		949
Reserve position in the IMF		1,103
Total:	May 31, 2006	35,685
	April 30, 2006	35,716
Net change		-31

Details on Deposits
Other central banks/Bank for International Settlements		1,002
Banks headquartered in Canada		0
Of which: located abroad		0
Banks headquartered abroad		2,958
Of which: located in Canada		0
Total		3,960

Details of Net Change
Reserves management operations²		-354
Gains and losses on gold sales		0
Net investment gains and losses
Return on investments³		136
Foreign currency debt charges		-70
Revaluation effects⁴		257
Net government operations⁵		0
Official intervention		0
Other transactions		0
Net change		-31

Currency Composition of Deposits and Securities
US dollars		17,847
Euro		15,184
Yen		531
Total		33,562

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

Foreign currency securities⁶	Principal	-795	-1,359	-1,598	-3,752
Foreign currency securities⁶	Interest	-369	-167	-740	-1,276
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		-1,164	-1,526	-2,338	-5,028

Additional Information (Nominal Value)
Undrawn, unconditional credit lines with banks headquartered outside Canada			6,000
Securities lent under repurchase agreements⁷			-2,530
Securities held under repurchase agreements⁸			1,658
Financial derivatives assets (net, marked to market)
Forwards			0
Swaps			3,096

Notes: There were no sales of gold settled in May. On May 31, gold holdings stood at 0.1 million ounces. The valuation is based on the May 31, 2006, London p.m. fix of US$653.00 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 May, Canada bills decreased by US$786 million to a level of outstanding bills of US$1,715 million. Cross-currency swaps of domestic obligations raised an equivalent of US$432 million. "Return on investments" comprises US$106 million of interest earned on investments and a US$30-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 May, the revaluation effect was mainly due to the appreciation of the euro. "Net government operations" are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves. "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 July 6, 2006 (covering the period June 2006).

A list of upcoming release dates is posted on the Department of Finance website located at www.fin.gc.ca/invest_x/releaseDates_e.asp.

____________________________________
For further information, media may contact:

Sandra Lavoratore
Financial Markets Division
Department of Finance
613 947-3919

David Gamble
Media Relations
Department of Finance
613 996-8080

For further information on the Exchange Fund Account, please consult the 2004 Report on the Management of Canada’s Official International Reserves, located at www.fin.gc.ca/toce/2005/oir05_e.html.

If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada website at 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)
May 31, 2006	17,847	15,715	71	949	1,103	35,685
April 30, 2006	18,660	14,997	70	931	1,058	35,716
March 31, 2006	20,204	13,812	63	917	1,038	36,034
February 28, 2006	16,707	13,974	61	908	1,034	32,684
January 31, 2006	16,813	14,135	62	907	1,042	32,959
December 31, 2005	16,842	13,822	56	897	1,401	33,018
November 30, 2005	16,646	14,566	54	894	2,039	34,199
October 31, 2005	16,909	14,214	51	898	2,142	34,214
September 30, 2005	16,725	13,824	52	900	2,098	33,599
August 31, 2005	16,878	14,354	47	907	2,113	34,299
July 31, 2005	16,241	14,050	47	890	2,101	33,329
June 30, 2005	17,303	14,196	48	893	2,484	34,924
May 31, 2005	16,785	14,483	45	904	2,817	35,034

Dec. 31, 2004	14,426	15,740	48	925	3,327	34,466
Dec. 31, 2003	15,575	15,961	45	838	3,848	36,267
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
The May 31, 2005 information above was added to the electronic version of this news release on June 6, 2006.



		Last Updated: 2006-06-06			Important Notices