OTTAWA – Today, the Government of Canada announced its plan to issue a US-dollar-denominated global bond later this week, subject to market conditions.
Issuing a global bond provides funds to supplement and diversify Canada’s liquid foreign reserves. Canada holds its liquid foreign reserves in the Exchange Fund Account (EFA).
Foreign exchange reserves provide a general source of prudential liquidity and promote orderly conditions for the Canadian dollar in foreign exchange markets.
Funds for the EFA can be raised through cross-currency swaps of Canadian-dollar borrowings, foreign-currency-denominated debt issues, and outright purchases of foreign currency.
The Government of Canada says it remains committed to responsible fiscal management so that it can continue to make investments to finish the fight against COVID-19 and to support long-term economic growth.
We seek Safe Harbor.