Finance committee  The law currently provides that monies can be advanced to the exchange fund account from the consolidated revenue fund. Also, for those who look at the legal meaning of “advance”, some would say that there is an inherent concept of being able to pay back those funds. This is wher

Finance committee  We have to report the assets on the balance sheet, but the fund is held in the name of the Minister of Finance and is reported on the balance sheet. It is managed with an asset-liability framework. For every dollar of asset, there's an equal liability. From a net position, it eff

Finance committee  It's both an asset and a liability, so to fund the assets in the EFA, the predominant mechanism is to issue government debt in the domestic market and then synthetically convert it into a foreign currency funding tool through a cross-currency swap. From a debt issuance perspectiv

Finance committee  Correct, with the asset.

Finance committee  This is a technical amendment in the sense that the policy was announced by the government back in 2011 and it has been reiterated in every subsequent budget that the funds within the exchange fund account would be available for liquidity purposes if, for instance, domestic marke

Finance committee  There are a couple of different ways. There is a statutory requirement for the minister to report on the exchange fund account, on the management of Canada's official international reserves, on an annual basis. It's a document that's tabled in Parliament, typically in October, fo

Finance committee  Under the Currency Act, there is currently a mechanism for advances to be made from the consolidated revenue fund to the exchange fund account. That mechanism exists, and some would suggest that the concept of advancement of funds embodies a concept of being able to transfer the

Finance committee  Exactly.

Finance committee  The reporting mechanism exists in terms of the positions of the exchange fund account, so that isn't being changed here, and amendments aren't being made to the requirements with respect to monthly and annual reporting. This is simply to clarify that it is in fact a two-way str

Finance committee  I'll give you a few points of clarification with respect to the figures. I think $86 billion is the totality of Canada's official international reserves. Within that, there is a portion that are within the exchange fund account. Within the exchange fund account, we have the fixed

Finance committee  There is the IMF reserve position as well.

Finance committee  There are two points here. Mr. Chair, if you would like us to speak about the next division—

Finance committee  Would you like us to proceed with that now?

Finance committee  Excellent, Thank you, Mr. Chair. The exchange fund account represents the largest component of Canada's official international reserves. In 2011, the government announced that the exchange fund account would be part of the government's prudential liquidity plan if, for instance,

Finance committee  Thank you for the question and the comment. I think what the federal government is trying to do is improve the securities regulatory framework. And to do that, it must indeed work with the provinces to come up with a governance framework that works, is more effective and better