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In Budget 2024, the Government of Canada reaffirmed its commitment to maintaining liquid foreign reserves at or above 3% of nominal GDP.

To support this goal, Canada will launch a U.S.-dollar-denominated global bond on March 11, subject to market conditions.

Issuing a global bond allows Canada to supplement and diversify its liquid foreign reserves, which provide a prudential liquidity buffer and help maintain orderly market conditions for the Canadian dollar in global foreign exchange markets.

This U.S.-dollar global bond will further strengthen the stability of Canada’s foreign currency reserves while catering to investor demand for high-quality assets, backed by Canada’s triple-A credit ratings from most major rating agencies.

Quick Facts

• Canada holds its liquid foreign reserves in the Exchange Fund Account (EFA).
• Foreign exchange reserves serve as a source of liquidity and support the stability of the Canadian dollar in global markets.
• Global bonds are one of the tools Canada uses to fund the purchase of foreign currency assets for the EFA.
• Canada’s last U.S.-dollar bond issuance took place on April 23, 2024, raising US$3 billion.