Canada sees increased international transactions in securities

0 Comment(s)Print E-mail Xinhua, October 17, 2020
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OTTAWA, Oct. 16 (Xinhua) -- International transactions in securities generated a net inflow of funds of 9.8 billion Canadian dollars (about 7.4 billion U.S. dollars) in the Canadian economy in August, according to Statistics Canada.

It brought the total to 112.6 billion Canadian dollars in 2020.

Non-resident investors acquired 15.5 billion Canadian dollars of Canadian securities in August, large purchases of debt securities.

At the same time, Canadian investors increased their holdings of foreign securities by 5.7 billion Canadian dollars, led by acquisitions of U.S. shares.

Foreign investors acquired 13.3 billion Canadian dollars of Canadian debt securities in August, following two months of divestment totalling 17.5 billion Canadian dollars.

The foreign investment activity reflected a strong demand in the secondary market for long-term debt securities issued by government entities.

Non-resident investors acquired 7.6 billion Canadian dollars of federal government outstanding bonds following two months of divestment.

Foreign acquisitions on the secondary market of these instruments totaled 40.6 billion Canadian dollars from February to May.

In addition, non-residents bought 2.5 billion Canadian dollars of provincial bonds and 1.8 billion Canadian dollars of federal government enterprise bonds on the secondary market, largely Canadian dollar-denominated instruments.

Foreign investors increased their holdings of Canadian short-term debt securities for a second straight month in August. The investment activity was mostly in money market instruments issued by Canadian private corporations as non-residents added 3.7 billion Canadian dollars worth in their portfolios, mainly banking sector instruments.

In August, Canadian long-term interest rates rose for the first time since December 2019. Meanwhile, Canadian short-term interest rates fell to a record low. Enditem

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