Briefly:

The Government of Canada will issue U.S.-dollar-denominated bonds to the global market, marking the first such issue in more than a decade, according to a press release from the Department of Finance.

The timing of the issue has yet to be announced, with the department saying it would be “in the near future.” The size of the issue has also not yet been announced.

The issue will boost Canada’s foreign exchange reserves, held in the Exchange Fund Account. The issue could help boost the U.S. dollar against the loonie, as it would add modestly to demand for the greenback instead of the loonie.

Earlier this week, Bank of Canada deputy governor Timothy Lane opined that the rising loonie was threatening to choke off Canada’s fledgling economic recovery and that “unconventional means” could be used to slow its ascent.

(08/28/09)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.