Finance committee  It has been the case for some time, and I'm extremely reluctant to forecast interest rates, because that's a bit of a losing game. However, we are setting the portfolio up. It has maturities out to ten and a half years, and we lock the funding in. I think, as portfolio managers, we're reasonably confident that we can continue to earn a small but positive return for our forecast horizon, which I would say would be two to four years.

Finance committee  Just to remind you, the portfolio is held in the name of the Minister of Finance. We do manage it, but it is the property of the Minister of Finance of the Government of Canada. It has been a while since we've held gold. I don't know exactly. We can confirm. I believe it was 2001 when the last of the gold was sold.

Finance committee  It is held in the name of the Minister of Finance, and he has discretion to use the funds.

Finance committee  We have done it before. It's normal practice in very small amounts, and that is because, as I said, the exchange fund account earns a little bit more in interest than it pays in expenses; so over time you build up a positive balance. We do try to manage it on hedged basis, so over time, as the amount of the unhedged builds up, we transfer that out into the consolidated revenue fund.

Finance committee  Yes, sir.

Finance committee  The Currency Act stipulates that advances can go from the CRF to the exchange fund account, and from the exchange fund account to the consolidated revenue fund, so it does move both ways. Also, on the Bank of Canada's website we report the size and composition of the reserves on a weekly basis, so any change in the size or composition would be available on notice to the public on a weekly basis.

Finance committee  These are financial assets. Translated to Canadian dollars, they represent over $100 billion in financial assets that would be an offset to come to the net debt amount.

Finance committee  Yes.

Finance committee  Yes, it's $105 billion Canadian equivalent.

Finance committee  On the Bank of Canada's website, we publish weekly, high-level updates of the size and currency composition. Monthly, more detailed reports are published on the Department of Finance's website, and on an annual basis there's the official report on the international reserves, which gives a much more fulsome and detailed explanation of the holdings and activities.

Finance committee  No, they don't, because the beauty of the way we manage the reserves—and we're somewhat unique in this way—is, as Mr. Marion mentioned, by doing an asset and liability hedge. If we own a 10-year U.S. treasury, for example, that is funded with a 10-year U.S. dollar obligation, so the currencies are matched.

Finance committee  That's correct.

Finance committee  Yes. The powers of the Bank of Canada are very specifically spelled out in the Bank of Canada Act and we cannot deviate from those at all. Specifically, the United Kingdom was included in the euro area countries. It may well no longer meet that definition, and this is a technical amendment to adjust that contingency.

Finance committee  No, securities can go out to ten and a half years, but given the nature of the securities we purchase, a ten-and-a-half-year U.S. treasury, bund, OAT, or U.K. gilt would be extremely liquid.

Finance committee  Right.