Latest Developments in the Canadian Economic Accounts
Revisions to Canada's Balance of International Payments

Release date: November 30, 2015

Revisions to the Balance of Payments Account (BOP) introduced as part of the 2015 Comprehensive Revision of the Canadian System of Macroeconomic Accounts (CSMA) reflect statistical, classification, conceptual and presentational changes. This exercise was conducted to strengthen the overall quality of the international accounts and to introduce new concepts and classifications as recommended by updated international standards—for BOP the IMF Balance of Payments and International Investment Position Manual, 6th edition (BPM6) and the OECD Benchmark Definition of Foreign Direct Investment (BD4). As is always the case, revisions were harmonized with those of the corresponding accounts in the CSMA.

The most important changes are in the financial account of the BOP, which are discussed first. The current account of the BOP had seen major changes implemented regarding updated international standards as part of the 2012 Comprehensive Revision exercise.

1. Financial Account

Revisions to the financial account of the balance of payments are explained by the integration of new statistical information, mainly information coming from new benchmark surveys, as well as the implementation of new international standards. In addition, new details for some components of the financial account were also introduced.

Revisions, more important from 2007 onward, generally tend to decrease the net lending of funds or increase the net borrowing of funds over the period. These revisions are consistent with those applied to the current account and current account balance during the period.

Chart 1 Net lending (+) or net borrowing (-), from financial account

Description for Chart 1

The title of the graph is "Chart 1 Net lending (+) or net borrowing (-), from financial account."
This is a line chart.
There are in total 40 categories in the horizontal axis. The vertical axis starts at -25 and ends at 15 with ticks every 5 points.
There are 2 series in this graph.
The vertical axis is "billions of dollars."
The units of the horizontal axis are quarters by year from first quarter 2005 to fourth quarter 2014.
The title of series 1 is "Revised estimate."
The minimum value is -21.424 occurring in third quarter 2010.
The maximum value is 8.615 occurring in third quarter 2006.
The title of series 2 is "Previously published estimate."
The minimum value is -20.989 occurring in third quarter 2010.
The maximum value is 8.615 occurring in third quarter 2006.

Data table for Chart 1
Table summary
This table displays the results of Data table for Chart 1 Previously published estimate and Revised estimate (appearing as column headers).
  Previously published estimate Revised estimate
2005 Q1 4.224 4.224
2005 Q2 4.122 4.122
2005 Q3 8.193 8.193
2005 Q4 8.010 8.010
2006 Q1 7.668 7.668
2006 Q2 5.634 5.634
2006 Q3 8.615 8.615
2006 Q4 0.703 0.703
2007 Q1 4.549 4.154
2007 Q2 7.252 7.020
2007 Q3 6.320 6.019
2007 Q4 -2.280 -2.289
2008 Q1 4.821 4.757
2008 Q2 0.348 0.082
2008 Q3 3.641 3.556
2008 Q4 -11.572 -11.552
2009 Q1 -11.485 -11.438
2009 Q2 -9.905 -10.028
2009 Q3 -8.860 -9.258
2009 Q4 -16.597 -16.840
2010 Q1 -10.868 -12.952
2010 Q2 -10.647 -11.530
2010 Q3 -20.989 -21.424
2010 Q4 -14.167 -14.199
2011 Q1 -17.477 -17.453
2011 Q2 -12.801 -12.900
2011 Q3 -9.868 -4.663
2011 Q4 -13.897 -13.854
2012 Q1 -14.623 -16.817
2012 Q2 -11.318 -13.677
2012 Q3 -17.474 -19.114
2012 Q4 -15.755 -13.082
2013 Q1 -12.266 -12.330
2013 Q2 -11.618 -14.927
2013 Q3 -13.494 -15.484
2013 Q4 -18.315 -13.506
2014 Q1 -11.233 -11.273
2014 Q2 -12.123 -12.204
2014 Q3 -7.123 -8.216
2014 Q4 -6.699 -11.502

Statistical revisions

Revisions to the financial account are related to the integration of new benchmark survey results which mainly affected the direct and portfolio investment functional categories. Another main contributor to the revisions to the financial account is the improved coverage of covered bonds and their reclassification from the other investment category (currency and deposit liabilities) to the portfolio investment category (Canadian bonds) of the financial account. Covered bonds are debt instruments generally issued by a financial institution and secured by a segregated pool of high quality assets. Given their characteristics, they are more properly classified in the portfolio investment functional category of the international accounts.

More detailed information on the geographical allocation of these issuances and their characteristics was available which enabled an improvement to the quality of the estimates recorded in the financial account and the overall international accounts for these instruments. Transactions (financial account), positions (International Investment Position – IIP) and investment income (current account) related to covered bonds are now generated on a security-by-security basis and are fully consistent in the international accounts.

Chart 2 New issues of Canadian bonds placed abroad

Description for Chart 2

The title of the graph is "Chart 2 New issues of Canadian bonds placed abroad."
This is a line chart.
There are in total 40 categories in the horizontal axis. The vertical axis starts at 0 and ends at 35 with ticks every 5 points.
There are 2 series in this graph.
The vertical axis is "billions of dollars."
The units of the horizontal axis are quarters by year from first quarter 2005 to fourth quarter 2014.
The title of series 1 is "Revised estimate."
The minimum value is 6.768 occurring in third quarter 2005.
The maximum value is 33.092 occurring in second quarter 2014.
The title of series 2 is "Previously published estimate."
The minimum value is 6.769 occurring in third quarter 2005.
The maximum value is 31.38 occurring in second quarter 2009.

Data table for Chart 2
Table summary
This table displays the results of Data table for Chart 2 Revised estimate and Previously published estimate (appearing as column headers).
  Revised estimate Previously published estimate
2005 Q1 11.344 11.344
2005 Q2 9.459 9.459
2005 Q3 6.768 6.769
2005 Q4 10.102 10.102
2006 Q1 8.258 8.259
2006 Q2 6.846 6.847
2006 Q3 8.521 8.520
2006 Q4 18.576 18.576
2007 Q1 12.116 12.116
2007 Q2 15.699 15.699
2007 Q3 7.462 7.463
2007 Q4 13.535 10.697
2008 Q1 11.094 7.769
2008 Q2 26.873 26.681
2008 Q3 13.050 9.529
2008 Q4 7.421 7.420
2009 Q1 16.912 16.912
2009 Q2 31.380 31.380
2009 Q3 16.749 16.703
2009 Q4 23.989 23.029
2010 Q1 16.192 14.079
2010 Q2 20.957 16.540
2010 Q3 26.584 19.537
2010 Q4 22.411 19.048
2011 Q1 19.700 13.556
2011 Q2 17.155 16.679
2011 Q3 21.766 14.656
2011 Q4 20.715 13.150
2012 Q1 28.557 16.896
2012 Q2 20.043 19.791
2012 Q3 12.649 10.203
2012 Q4 23.857 22.373
2013 Q1 15.515 15.514
2013 Q2 18.103 18.103
2013 Q3 25.899 18.754
2013 Q4 23.947 17.807
2014 Q1 24.944 24.045
2014 Q2 33.092 28.615
2014 Q3 32.243 20.096
2014 Q4 25.778 18.081

Classification changes

In addition to the reclassification of covered bonds, more detailed information and new data series related to most of the functional categories of the financial account are also released as part of the 2015 Comprehensive Revision of the CSMA, improving the overall relevance of the international accounts and corresponding compliance with international standards.

Additional details are available for Foreign Direct Investment, Official International Reserves and Other Investment in the financial account.

Table 1
Financial account, comparison of former- and new presentation
Table summary
This table displays the results of Financial account. The information is grouped by Former presentation (appearing as row headers), New presentation (appearing as column headers).
Former presentation New presentation
Net lending and net borrowing, from financial account Net lending and net borrowing, from financial account
Net acquisition of financial assets Net acquisition of financial assets
Canadian direct investment abroad   Note ...: not applicable
Note ...: not applicable   Direct investment assets
Note ...: not applicable     Equity
Note ...: not applicable       Equity other than reinvested earnings
Note ...: not applicable       Reinvested earnings
Note ...: not applicable     Debt instruments
Canadian portfolio investment   Canadian portfolio investment
Foreign debt securities     Foreign debt securities
Foreign money market instruments       Foreign money market instruments
Foreign bonds       Foreign bonds
Foreign equity and investment fund shares     Foreign equity and investment fund shares
Official international reserves   Official international reserves
United States dollars     Note ...: not applicable
Other foreign currencies     Note ...: not applicable
Note ...: not applicable     Securities
Note ...: not applicable     Currency and deposits
Gold     Gold
Special drawing rights     Special drawing rights
Reserve position in International Monetary Fund (IMF)     Reserve position in International Monetary Fund (IMF)
Other Canadian investment   Other Canadian investment
Loans     Loans
Currency and deposits     Currency and deposits
Other assets     Note ...: not applicable
Note ...: not applicable     Trade credit and advances
Note ...: not applicable     Other accounts receivable
Net incurrence of liabilities Net incurrence of liabilities
Foreign direct investment in Canada   Note ...: not applicable
Note ...: not applicable   Direct investment liabilities
Note ...: not applicable     Equity
Note ...: not applicable       Equity other than reinvested earnings
Note ...: not applicable       Reinvested earnings
Note ...: not applicable     Debt instruments
Foreign portfolio investment   Foreign portfolio investment
Canadian debt securities     Canadian debt securities
Canadian money market instruments       Canadian money market instruments
Canadian bonds       Canadian bonds
Canadian equity and investment fund shares     Canadian equity and investment fund shares
Other foreign investment   Other foreign investment
Loans     Loans
Currency and deposits     Currency and deposits
Special drawing rights     Special drawing rights
Other liabilities     Note ...: not applicable
Note ...: not applicable     Trade credit and advances
Note ...: not applicable     Other accounts payable
Discrepancy (net errors and omissions) Discrepancy (net errors and omissions)

For the Official International Reserves functional category, reserves in the form of securities are now available from 2007. These instruments were amalgamated with foreign currency and deposits previously. A large proportion of Canada's international reserves are in the form of foreign securities and showing these instruments separately from the rest of the currency and deposits provides additional information on the characteristics and exposure of Canada's international reserve assets.

For the Foreign Direct Investment (FDI) functional category, two major changes are introduced. First, FDI flows are now presented by type of instruments (equity other than reinvested earnings, reinvested earnings and debt instruments) as opposed to a total before. This additional detail provides users with more relevant information on the nature of the FDI activity on a quarterly basis. It also enables Statistics Canada to increase its compliance with international standards and to improve the international comparability of FDI information with other countries.

Second, the financial account main presentation has been modified to show FDI data on the asset-liability principle basis (i.e., gross basis) as opposed to a directional principle (i.e., net basis) as had been the case historically in the BOP. The difference between the two FDI conceptual presentations resides in the classification of reverse investment such as (1) Canadian affiliates' claims on foreign parents and (2) Canadian parents' liabilities to foreign affiliates. Under the asset/liability presentation, (1) is classified as an asset and included in Direct Investment Assets and (2) is classified as a liability and included in Direct Investment LiabilityNote 1. New terminology was introduced to represent this concept: Canadian direct investment abroad is now referred to as Direct investment assets in the new presentation while Foreign direct investment in Canada was renamed to Direct investment liabilities.

Chart 3 Direct investment conceptual presentations: asset liability and directional

Description for Chart 3

The title of the graph is "Chart 3 Direct investment conceptual presentations: asset liability and directional."
This is a line chart.
There are in total 60 categories in the horizontal axis. The vertical axis starts at -5 and ends at 40 with ticks every 5 points.
There are 2 series in this graph.
The vertical axis is "billions of dollars."
The units of the horizontal axis are quarters by year from first quarter 2000 to fourth quarter 2014.
The title of series 1 is "Direct investment assets (asset liability presentation)."
The minimum value is -1.247 occurring in first quarter 2010.
The maximum value is 34.571 occurring in fourth quarter 2014.
The title of series 2 is "Canadian direct investment abroad (directional presentation)."
The minimum value is -2.901 occurring in first quarter 2010.
The maximum value is 33.344 occurring in fourth quarter 2014.

Data table for Chart 3
Table summary
This table displays the results of Data table for Chart 3 Direct investment assets (asset liability presentation) and Canadian direct investment abroad (directional presentation) (appearing as column headers).
  Direct investment assets (asset liability presentation) Canadian direct investment abroad (directional presentation)
2000 Q1 14.262 13.494
2000 Q2 25.932 25.494
2000 Q3 2.846 2.237
2000 Q4 26.546 25.128
2001 Q1 15.236 14.306
2001 Q2 21.545 22.259
2001 Q3 13.683 12.243
2001 Q4 6.367 6.993
2002 Q1 6.103 5.823
2002 Q2 8.763 7.621
2002 Q3 15.097 12.713
2002 Q4 15.871 15.858
2003 Q1 5.411 4.915
2003 Q2 2.760 3.071
2003 Q3 5.069 4.760
2003 Q4 18.682 19.372
2004 Q1 7.592 6.145
2004 Q2 28.385 30.450
2004 Q3 13.224 11.786
2004 Q4 9.846 8.015
2005 Q1 7.018 6.897
2005 Q2 6.175 5.634
2005 Q3 14.575 13.891
2005 Q4 5.239 6.948
2006 Q1 7.227 5.278
2006 Q2 17.478 15.707
2006 Q3 11.698 12.957
2006 Q4 20.605 18.480
2007 Q1 21.794 21.448
2007 Q2 15.421 14.066
2007 Q3 15.792 16.116
2007 Q4 17.063 17.786
2008 Q1 34.169 31.822
2008 Q2 17.359 14.307
2008 Q3 24.771 23.347
2008 Q4 16.603 15.116
2009 Q1 9.133 5.343
2009 Q2 5.028 5.293
2009 Q3 27.812 28.738
2009 Q4 0.796 5.894
2010 Q1 -1.247 -2.901
2010 Q2 9.452 9.833
2010 Q3 3.222 1.161
2010 Q4 25.565 27.677
2011 Q1 14.531 12.543
2011 Q2 -0.098 3.765
2011 Q3 17.956 18.799
2011 Q4 17.538 16.495
2012 Q1 7.304 10.335
2012 Q2 10.947 5.132
2012 Q3 26.817 24.936
2012 Q4 17.009 15.416
2013 Q1 6.788 4.961
2013 Q2 5.772 8.830
2013 Q3 28.840 25.117
2013 Q4 12.399 17.606
2014 Q1 14.404 9.609
2014 Q2 7.569 7.622
2014 Q3 12.880 11.021
2014 Q4 34.571 33.344

Chart 4 Direct investment conceptual presentations: asset liability and directional

Description for Chart 4

The title of the graph is "Chart 4 Direct investment conceptual presentations: asset liability and directional."
This is a line chart.
There are in total 59 categories in the horizontal axis. The vertical axis starts at -20 and ends at 60 with ticks every 10 points.
There are 2 series in this graph.
The vertical axis is "billions of dollars."
The units of the horizontal axis are quarters by year from first quarter 2000 to third quarter 2014.
The title of series 1 is "Direct investment liabilities (asset liability presentation)."
The minimum value is -8.64 occurring in second quarter 2004.
The maximum value is 50.326 occurring in fourth quarter 2000.
The title of series 2 is "Foreign direct investment in Canada (directional presentation)."
The minimum value is -8.173 occurring in fourth quarter 2004.
The maximum value is 50.74 occurring in fourth quarter 2007.

Data table for Chart 4
Table summary
This table displays the results of Data table for Chart 4 Direct investment liabilities (asset liability presentation) and Foreign direct investment in Canada (directional presentation) (appearing as column headers).
  Direct investment liabilities (asset liability presentation) Foreign direct investment in Canada (directional presentation)
2000 Q1 10.184 9.417
2000 Q2 30.467 30.029
2000 Q3 11.453 10.844
2000 Q4 50.326 48.908
2001 Q1 10.746 9.816
2001 Q2 17.858 18.571
2001 Q3 7.593 6.153
2001 Q4 7.678 8.304
2002 Q1 17.616 17.336
2002 Q2 10.180 9.039
2002 Q3 4.596 2.212
2002 Q4 6.196 6.183
2003 Q1 6.330 5.834
2003 Q2 4.831 5.142
2003 Q3 -0.806 -1.116
2003 Q4 -0.068 0.623
2004 Q1 7.075 5.628
2004 Q2 -8.640 -6.576
2004 Q3 9.980 8.542
2004 Q4 -6.342 -8.173
2005 Q1 5.087 4.966
2005 Q2 4.463 3.923
2005 Q3 13.316 12.632
2005 Q4 7.902 9.611
2006 Q1 15.758 13.809
2006 Q2 7.305 5.534
2006 Q3 23.284 24.543
2006 Q4 26.634 24.510
2007 Q1 21.461 21.115
2007 Q2 24.153 22.798
2007 Q3 30.499 30.823
2007 Q4 50.017 50.740
2008 Q1 22.720 20.373
2008 Q2 11.679 8.626
2008 Q3 24.243 22.819
2008 Q4 15.348 13.861
2009 Q1 5.059 1.270
2009 Q2 -0.070 0.195
2009 Q3 14.865 15.790
2009 Q4 3.594 8.693
2010 Q1 13.299 11.645
2010 Q2 9.740 10.121
2010 Q3 -4.630 -6.691
2010 Q4 12.070 14.182
2011 Q1 14.022 12.034
2011 Q2 13.978 17.841
2011 Q3 7.239 8.083
2011 Q4 2.340 1.296
2012 Q1 14.445 17.476
2012 Q2 11.523 5.708
2012 Q3 10.416 8.535
2012 Q4 12.950 11.357
2013 Q1 24.465 22.639
2013 Q2 19.495 22.553
2013 Q3 17.680 13.957
2013 Q4 9.535 14.742
2014 Q1 20.116 15.321
2014 Q2 13.154 13.207
2014 Q3 17.230 15.371
2014 Q4 22.042 20.815

A new CANSIM table illustrating the conversion of FDI transactions from the directional presentation to the asset liability presentation was created. This supplementary information was developed to help users better understand the differences between the current and the former presentations as well as to link to the time series based on the FDI directional principle. It has to be noted that Canada's annual detailed Foreign Direct Investment program presenting the stock of inward and outward direct investment by country and industry still remains on a directional presentation. The directional principle remains the measure used in the supplementary CANSIM tables showing quarterly direct investment flows by type of transactions and by industry.

The change from the directional to asset liability presentation also has an impact on the value of the aggregates net acquisition of financial assets and net incurrence of liabilities in the financial account. However, this classification change does not affect the value of the net lending/borrowing of the financial account.

For the Other Investment functional category, estimates of trade credit and advances are now identified separately in the financial account as required by international standards. Trade credit and advances arise when payment for goods or services is not made at the same time as the change in ownership of a good or provision of a service. Previously, these instruments were amalgamated with other types of instruments classified in the other investment category. Showing this type of financial instrument separately provides additional insight on the financing of goods and services.

2. Current account

Revisions to Canada's current account mainly reflect the integration of new statistical information and changes in classification. Over the period, revisions generally result in a deterioration of Canada's current account balance and are more important from 2012 onward.

Chart 5 Current account balance

Description for Chart 5

The title of the graph is "Chart 5 Current account balance."
This is a line chart.
There are in total 40 categories in the horizontal axis. The vertical axis starts at -25 and ends at 15 with ticks every 5 points.
There are 2 series in this graph.
The vertical axis is "billions of dollars."
The units of the horizontal axis are quarters by year from first quarter 2005 to fourth quarter 2014.
The title of series 1 is "Revised estimate."
The minimum value is -19.144 occurring in second quarter 2012.
The maximum value is 12.569 occurring in fourth quarter 2005.
The title of series 2 is "Previously published estimate."
The minimum value is -18.153 occurring in third quarter 2010.
The maximum value is 12.563 occurring in fourth quarter 2005.

Chart 5 Current account balance
Table summary
This table displays the results of Chart 5 Current account balance Revised estimate and Previously published estimate (appearing as column headers).
  Revised estimate Previously published estimate
2005 Q1 0.568 0.562
2005 Q2 3.239 3.232
2005 Q3 9.796 9.789
2005 Q4 12.569 12.563
2006 Q1 4.371 4.360
2006 Q2 3.982 3.972
2006 Q3 6.884 6.874
2006 Q4 5.146 5.136
2007 Q1 1.701 1.754
2007 Q2 5.699 5.756
2007 Q3 3.386 3.439
2007 Q4 1.147 1.255
2008 Q1 1.816 1.965
2008 Q2 4.931 5.223
2008 Q3 5.226 5.140
2008 Q4 -10.340 -10.419
2009 Q1 -10.230 -10.466
2009 Q2 -11.580 -10.944
2009 Q3 -12.485 -12.486
2009 Q4 -11.895 -11.853
2010 Q1 -15.426 -15.299
2010 Q2 -14.259 -13.356
2010 Q3 -18.547 -18.153
2010 Q4 -11.766 -11.610
2011 Q1 -13.715 -13.558
2011 Q2 -14.960 -14.001
2011 Q3 -10.120 -9.720
2011 Q4 -10.286 -9.917
2012 Q1 -15.213 -14.664
2012 Q2 -19.144 -16.293
2012 Q3 -16.347 -14.781
2012 Q4 -14.975 -14.174
2013 Q1 -15.557 -14.066
2013 Q2 -17.989 -15.582
2013 Q3 -13.470 -13.012
2013 Q4 -12.651 -13.594
2014 Q1 -11.275 -11.022
2014 Q2 -12.219 -11.270
2014 Q3 -9.070 -7.819
2014 Q4 -12.329 -11.368

Statistical revisions

The major factors explaining the revisions to the current account are the integration of new benchmark information from annual surveys and administrative sources. These factors explain most of the revisions to trade in goods and services as well as to income on foreign direct investment, which led the changes to the current account balance.  In addition, trade estimates were impacted by coherence with the Supply-Use tables in the integrated system of accounts.

Another contributing factor to current account revisions, from 2008 onward, resides in the integration of Government Finance Statistics (GFS) information on current government transfers. Current transfers for the government sector are now fully consistent with the GFS data and presented on an accrual basis in the balance of payments. The level of transfers was revised for both receipts and payments. The allocation of payment transfers by sector was also improved through this benchmarking exercise, with a higher share being allocated to the private sector as opposed to the government sector. This new information more properly reflects Canada's international activities in this area and illustrates better the role of the private sector in the transmission of these transfers to non-residents.

Chart 6 Current account transfers - Payments

Description for Chart 6

The title of the graph is "Chart 6 Current account transfers - Payments."
This is a line chart.
There are in total 15 categories in the horizontal axis. The vertical axis starts at 0 and ends at 10 with ticks every 1 points.
There are 4 series in this graph.
The vertical axis is "billions of dollars."
The units of the horizontal axis are years from 2000 to 2014.
The title of series 1 is "Revised estimate of private transfers."
The minimum value is 2.874 occurring in 2000.
The maximum value is 8.966 occurring in 2014.
The title of series 2 is "Previously published estimate of private transfers."
The minimum value is 2.874 occurring in 2000.
The maximum value is 8.06 occurring in 2014.
The title of series 3 is "Revised estimate of government transfers."
The minimum value is 2.732 occurring in 2000.
The maximum value is 5.193 occurring in 2010.
The title of series 4 is "Previously published estimate of government transfers."
The minimum value is 2.732 occurring in 2000.
The maximum value is 5.715 occurring in 2013.

Data table for Chart 6
Table summary
This table displays the results of Data table for Chart 6 Revised estimate of private transfers, Previously published estimate of private transfers, Revised estimate of government transfers and Previously published estimate of government transfers (appearing as column headers).
  Revised estimate of private transfers Previously published estimate of private transfers Revised estimate of government transfers Previously published estimate of government transfers
2000 2.874 2.874 2.732 2.732
2001 3.334 3.334 2.993 2.993
2002 3.675 3.675 3.145 3.145
2003 3.721 3.721 3.521 3.521
2004 4.392 4.392 3.750 3.750
2005 5.731 5.731 4.649 4.649
2006 7.136 7.136 4.348 4.348
2007 7.337 7.170 4.562 4.562
2008 7.109 6.650 4.744 5.062
2009 8.008 7.297 4.528 5.229
2010 7.792 7.218 5.193 5.584
2011 8.015 7.242 5.022 5.462
2012 7.996 7.528 5.124 5.424
2013 8.536 7.674 5.181 5.715
2014 8.966 8.060 4.700 5.228

Classification changes

The current account is also revised due to the improved coverage and the reclassification of covered bonds (see write up in the financial account section with respect to transactions). As a result of this reclassification, interest paid by Canadian issuers to non-resident investors on their holdings of these securities are now reflected in the portfolio investment income category of the current account instead of the other investment category. In addition to the reclassification, the quality of these estimates has been improved with income on these instruments now being generated on a security-by-security basis. Overall, this new methodology resulted in higher payments recorded in the current account over the period 2007 onward.

Chart 7 Interest payments on foreign holdings of Canadian bonds

Description for Chart 7

The title of the graph is " Chart 7 Interest payments on foreign holdings of Canadian bonds."
This is a line chart.
There are in total 40 categories in the horizontal axis. The vertical axis starts at 4 and ends at 9 with ticks every 1 points.
There are 2 series in this graph.
The vertical axis is "billions of dollars."
The units of the horizontal axis are quarters by year from first quarter 2005 to fourth quarter 2014.
The title of series 1 is "Revised estimate."
The minimum value is 5.26 occurring in second quarter 2006.
The maximum value is 8.479 occurring in fourth quarter 2014.
The title of series 2 is "Previously published estimate."
The minimum value is 5.26 occurring in second quarter 2006.
The maximum value is 8.13 occurring in fourth quarter 2014.

Data table for Chart 7
Table summary
This table displays the results of Data table for Chart 7 Revised estimate and Previously published estimate (appearing as column headers).
  Revised estimate Previously published estimate
2005 Q1 5.767 5.767
2005 Q2 5.847 5.847
2005 Q3 5.702 5.702
2005 Q4 5.558 5.558
2006 Q1 5.286 5.286
2006 Q2 5.260 5.260
2006 Q3 5.358 5.358
2006 Q4 5.575 5.575
2007 Q1 5.668 5.668
2007 Q2 5.536 5.533
2007 Q3 5.441 5.435
2007 Q4 5.307 5.279
2008 Q1 5.424 5.354
2008 Q2 5.596 5.514
2008 Q3 5.964 5.873
2008 Q4 6.424 6.295
2009 Q1 6.358 6.233
2009 Q2 6.335 6.210
2009 Q3 6.405 6.280
2009 Q4 6.392 6.263
2010 Q1 6.389 6.263
2010 Q2 6.535 6.399
2010 Q3 6.890 6.709
2010 Q4 7.005 6.831
2011 Q1 6.870 6.668
2011 Q2 6.963 6.733
2011 Q3 7.095 6.856
2011 Q4 7.290 7.012
2012 Q1 7.146 6.847
2012 Q2 7.249 6.917
2012 Q3 7.274 6.933
2012 Q4 7.365 7.033
2013 Q1 7.375 7.070
2013 Q2 7.556 7.252
2013 Q3 7.645 7.312
2013 Q4 7.804 7.439
2014 Q1 7.889 7.619
2014 Q2 8.010 7.729
2014 Q3 8.123 7.827
2014 Q4 8.479 8.130

3. Capital account

Statistical revisions

A review of the transactions recorded as capital transfers in the capital account of the BOP was undertaken—more specifically, transactions related to debt forgiveness on government loan assets. Debt forgiveness is treated as a capital transfer in the BOP with a corresponding entry in the financial account to reflect the reduction of the loan assets equivalent to the value of the debt forgiven. A reconciliation of these transactions was conducted with the GFS data source from 2008 onward, and this resulted in an improved quality of this information recorded in both the capital and financial accounts.

Classification changes

The capital account of the balance of payments includes two types of transactions; transactions in non-produced non-financial assets and capital transfers. Revisions to the capital account mostly arise from the change in the treatment of some special international transactions to better reflect their nature in the international accounts and better align their treatment within the macroeconomic accounts framework.

Some transactions previously classified as 'financial assets' and recorded in the financial account of the BOP are now classified in the capital account as transactions in 'non-produced non-financial assets'. This includes transactions such as the sale/acquisition of non-financial assets by governments and corporations. The net impact on the overall BOP of this classification change is nil. However, in addition to the reclassification, a review of similar transactions in most recent years has been conducted and resulted in an improved coverage of these transactions in the BOP.

Revisions to the monthly program on Canada's international transactions in securities

This program provides information on the size and the nature of transactions in Canadian and foreign securities between resident and non-resident investors, including information on foreign holdings of domestic debt securities. This information is also integrated in the financial account of the BOP and in the IIP.

Statistical change

Statistical changes to the monthly program on Canada's international transactions in securities mostly refer to the implementation of a more robust methodology to generate market value estimates of foreign holdings of Canadian bonds from 2007. Canadian bonds at market value are now evaluated in the monthly program, and in the IIP, based on month-end observed market prices on an instrument basis, where available. The new approach replaces the one where average transaction prices were used during the period as a proxy for observed prices.

Classification changes

One of the major revisions to the series on international transactions in securities relates to the change in classification of Canadian covered bonds and their improved coverage, as mentioned previously in this article. These instruments are now included in securities and largely explain revisions to flows and positions of Canadian bonds in the monthly program from 2007.

Additional details are also available on a monthly basis with respect to Canada's international transactions in securities, covering new analytical dimensions related to this type of activity.

First, market value estimates of foreign holdings of Canadian debt securities are now produced on a monthly basis and released as part of Canada's International Transactions in Securities. These estimates were available on a quarterly basis only as part of the IIP release prior to the 2015 Comprehensive Revision of the CSMA.

Second, the monthly position series on Canadian debt securities held by non-residents by sector of issuer is now available by currency of issue. This new information highlights the importance of foreign currency-denominated debt securities issued by Canadian governments and corporations and the extent to which this stock of debt is exposed to currency fluctuations.

Chart 8 Currency composition of Canadian bonds held by non-residents, September 2015

Description for Chart 8

The title of the graph is "Chart 8 Currency composition of Canadian bonds held by non-residents, September 2015."
This is a column stacked chart.
There are in total 4 categories in the horizontal axis. The vertical axis starts at 0 and ends at 100 with ticks every 20 points.
There are 3 series in this graph.
The vertical axis is "percent."
The horizontal axis is "Sector."
The title of series 1 is "Canadian dollar."
The minimum value is 13 and it corresponds to "Private corporations."
The maximum value is 92 and it corresponds to "Federal government."
The title of series 2 is "U.S. dollar."
The minimum value is 6 and it corresponds to "Federal government."
The maximum value is 72 and it corresponds to "Private corporations."
The title of series 3 is "Other foreign currencies."
The minimum value is 1 and it corresponds to "Federal government."
The maximum value is 22 and it corresponds to "Other governments."

Data table for chart 8
Table summary
This table displays the results of Data table for chart 8. The information is grouped by Sector (appearing as row headers), Canadian dollar, U.S. dollar and Other foreign currencies (appearing as column headers).
Sector Canadian dollar U.S. dollar Other foreign currencies
Federal government 92 6 1
Other governments 43 35 22
Government business enterprises 69 24 7
Private corporations 13 72 16

Third, another dimension added to the monthly Canadian debt securities foreign position series relates to the maturity of these instruments. The maturity of debt securities is expressed either as short-term or long-term. Short-term refers to instruments with a maturity of one year or less while long-term is defined as more than one year. The maturity can be expressed based on the 'original maturity' or the 'remaining maturity'Note 2.  A new series on foreign holdings of Canadian debt securities by remaining maturity (short-term and long-term) is now available, with positions expressed either at nominal value (borrowers' perspective) or market value. This series complements the existing information published on original maturity. Information by remaining maturity provides further details on the liquidity dimension of Canada's external portfolio debt and on the amount of outstanding debt that Canadian borrowers will have to repay in a short (one year or less) and long-term (more than one year) horizon.

Chart 9 Foreign holdings of Canadian debt securities due within one year, remaining and original maturity

Description for Chart 9

The title of the graph is "Chart 9 Foreign holdings of Canadian debt securities due within one year, remaining and original maturity."
This is a line chart.
There are in total 105 categories in the horizontal axis. The vertical axis starts at 0 and ends at 250 with ticks every 50 points.
There are 2 series in this graph.
The vertical axis is "billions of dollars."
The units of the horizontal axis are months by year from January 2007 to September 2015.
The title of series 1 is "Remaining maturity."
The minimum value is 63.103 occurring in October 2007.
The maximum value is 198.824 occurring in August 2015.
The title of series 2 is "Original maturity."
The minimum value is 18.739 occurring in February 2008.
The maximum value is 90.017 occurring in June 2015.

Data table for Chart 9
Table summary
This table displays the results of Data table for Chart 9. The information is grouped by Maturity (appearing as row headers), Remaining maturity and Original maturity (appearing as column headers).
Maturity Remaining maturity Original maturity
2007 January 66.677 23.825
2007 February 66.447 24.009
2007 March 67.917 23.730
2007 April 66.906 22.693
2007 May 71.844 22.664
2007 June 68.727 24.089
2007 July 70.263 22.778
2007 August 72.752 22.554
2007 September 66.105 22.383
2007 October 63.103 21.039
2007 November 72.455 21.408
2007 December 75.813 21.999
2008 January 75.214 20.041
2008 February 72.767 18.739
2008 March 70.657 18.772
2008 April 71.165 20.182
2008 May 72.548 20.529
2008 June 69.588 21.388
2008 July 67.224 22.264
2008 August 70.637 22.605
2008 September 73.381 23.653
2008 October 74.015 25.394
2008 November 77.452 30.170
2008 December 73.899 34.899
2009 January 77.326 38.866
2009 February 78.261 39.167
2009 March 85.801 44.827
2009 April 81.943 43.749
2009 May 80.690 40.867
2009 June 87.143 44.776
2009 July 80.405 39.632
2009 August 81.384 38.749
2009 September 79.690 36.213
2009 October 76.574 35.036
2009 November 77.094 32.661
2009 December 76.280 32.887
2010 January 79.098 35.834
2010 February 80.048 34.778
2010 March 78.766 32.526
2010 April 77.038 32.164
2010 May 92.430 34.989
2010 June 87.947 33.382
2010 July 88.275 33.991
2010 August 92.050 33.625
2010 September 85.965 33.547
2010 October 87.942 32.370
2010 November 92.599 33.336
2010 December 90.521 35.559
2011 January 95.109 37.496
2011 February 89.795 36.338
2011 March 89.274 36.111
2011 April 91.977 38.915
2011 May 106.243 42.435
2011 June 106.804 41.219
2011 July 110.599 48.513
2011 August 114.285 50.376
2011 September 119.416 58.394
2011 October 113.905 58.385
2011 November 123.909 64.323
2011 December 132.156 67.778
2012 January 124.984 62.944
2012 February 131.632 61.096
2012 March 125.679 59.748
2012 April 127.036 61.663
2012 May 147.181 69.889
2012 June 138.931 70.372
2012 July 136.013 67.069
2012 August 139.246 71.357
2012 September 144.961 74.549
2012 October 142.856 71.597
2012 November 144.118 75.289
2012 December 144.498 80.758
2013 January 159.977 80.668
2013 February 158.072 78.872
2013 March 161.045 75.385
2013 April 173.000 80.088
2013 May 184.204 84.558
2013 June 174.482 85.423
2013 July 178.506 85.552
2013 August 181.704 88.659
2013 September 190.692 88.255
2013 October 183.980 82.491
2013 November 190.878 75.859
2013 December 192.085 80.252
2014 January 186.146 80.410
2014 February 191.896 82.620
2014 March 182.729 76.506
2014 April 182.172 80.212
2014 May 191.584 82.673
2014 June 188.027 82.298
2014 July 192.423 81.185
2014 August 194.290 84.661
2014 September 181.865 80.806
2014 October 183.038 77.293
2014 November 190.243 77.898
2014 December 183.254 80.444
2015 January 189.618 78.372
2015 February 176.703 75.523
2015 March 170.415 70.695
2015 April 173.271 76.721
2015 May 185.210 77.678
2015 June 190.845 90.017
2015 July 191.918 88.612
2015 August 198.824 89.154
2015 September 198.375 89.126

Notes

Date modified: