Canada’s net foreign asset position rose by $110.1 billion to a record $544.2 billion in the first quarter, a second consecutive quarterly increase, according to Statistics Canada.
“This growth mainly reflected the overall upward revaluation effect (+$103.6 billion) of a depreciating Canadian dollar against all major foreign currencies. Over the quarter, the Canadian dollar depreciated against the U.S. dollar (-2.7 per cent), the euro (-5.1 per cent), the British pound (-6.3 per cent) and the Japanese yen (-8.1 per cent),” said the federal agency on Wednesday.
“At the end of the first quarter, 97 per cent of Canada’s international assets were denominated in foreign currencies, compared with 40 per cent of Canada’s international liabilities. The U.S. dollar was the most important foreign currency of denomination for both international assets (62 per cent) and liabilities (31 per cent).”
StatsCan said Canada’s net asset position with the United States reached $75.2 billion at the end of the first quarter. At the same time, Canada’s net foreign asset position with countries other than the United States totalled $469.0 billion.
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.