The Government of Canada 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.
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.