OTTAWA, Canada – On May 19, the government of Canada launched a US-dollar-denominated global bond, with pricing to be finalised today, says the office of the minister of finance and national revenue. In budget 2025 and Spring Economic Update 2026, the government of Canada reiterated its commitment to maintain liquid foreign reserves at or above three per cent of nominal gross domestic product.
“Global bonds raise money to add to and diversify Canada’s foreign currency reserves. These reserves act as a financial buffer for the government and help support stable trading of the Canadian dollar in foreign exchange markets, if ever needed,” the government department added. “This week’s US-dollar global bond will further strengthen the stability of Canada’s foreign currency reserves while meeting investor demand for high-quality assets backed by Canada’s AAA credit ratings from most major credit rating agencies.”
Quick facts
- Canada holds its liquid foreign reserves in the Exchange Fund Account (EFA).
- Foreign exchange reserves provide a general source of prudential liquidity and help promote orderly conditions for the Canadian dollar in foreign exchange markets.
- Global bonds are one source of funding that Canada uses to purchase foreign currency assets for the EFA.
- The government of Canada last issued a US-dollar bond on March 11, 2025 worth USD 3.5 billion.