Government of Canada Plans to Issue US-Dollar Global Bond
Ottawa – The long-term financial security of Canadians is a cornerstone of the Government of Canada’s efforts to help protect the middle class and those working hard to join it.
Today, the Government of Canada announced plans 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 foreign exchange reserves for the benefit of Canada’s financial position.
- Canada holds its foreign exchange reserves in the Exchange Fund Account (EFA).
- Foreign exchange reserves provide a general source of prudential liquidity and support the promotion of 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.