The Department of Finance announced today that Canada’s official international reserves decreased by an amount equivalent to US$408 million during July to US$75,466 million.

Details on the level and composition of Canada’s reserves as of July 31, 2014, 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.

NOTES:

1. There were no sales of gold settled in July. On July 31, gold holdings stood at 95,895 ounces. The valuation is based on the July 31, 2014, London p.m. fix of US$1,285.25 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 July, Canada bills decreased by US$335.3 million to a level of outstanding bills of US$1,736.6 million; a total of US$853.6 million of cross-currency swaps of domestic obligations was raised; and an equivalent of US$251.5 million in foreign exchange swaps matured.
3. “Return on investments” comprises US$95 million of interest earned on investments and a US$120-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. In July, the revaluation effect was mainly due to the depreciation of the euro.
5. “Net government operations” are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves.
6. “Foreign currency securities” include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities.
7. “Securities lent under repurchase agreements” are included in total reserves. Collateral provided in securities lending transactions is not included in total reserves.
8. 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 September 4, 2014 (covering the period August 2014).

For further information on the Exchange Fund Account, please consult the Report on the Management of Canada's Official International Reserves—April 1, 2012 – March 31, 2013.