Government bolsters Canada’s foreign reserves with US-dollar global bond

The federal government has launched a five-year US dollar global bond.

This was Canada’s second largest order book for a global bond in the past 15 years, at US$13.8 billion. This demand comes a week after the government introduced Budget 2024 and demonstrates strong investor confidence in Canada’s responsible fiscal management and is reflective of Canada’s AAA credit ratings.

The investor base for this five-year bond includes a wide range of central banks, international institutions, bank treasuries, and foreign-based investment funds.

Liquid foreign reserves are a source of prudential liquidity and promote orderly conditions for the Canadian dollar in foreign exchange markets.