Canadian government bolsters foreign reserves
Canada issues US-dollar global bond
On April 19, 2023, the Canadian government issued USD 4 billion in five-year global bonds.
Issuing a global bond provides funds to supplement and diversify funding sources for Canada’s liquid foreign reserves. Liquid foreign reserves are a source of prudential liquidity and promote orderly conditions for the Canadian dollar in foreign exchange markets.
The investor base for the five-year bond issue includes a wide range of central banks, international institutions, bank treasuries, and foreign-based investment funds.
The issuance of this global bond is in line with the government’s commitment that was stated in the budget for 2023. It is a commitment to maintain liquid foreign reserves at or above 3% of nominal gross domestic product.
The issuance shows strong global demand as evidenced by the final order book of over USD 13 billion.
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