OTTAWA – Statistics Canada says the country’s net foreign debt declined by more than half in the second quarter to $103.7 billion, the lowest level since 2007.
The agency says this mainly reflected the impact of lower Canadian stock markets on the value of Canada’s international liabilities as well as the revaluation effect of a weaker Canadian dollar on international assets and liabilities.
It says Canada’s international assets increased $59.3 billion to $2,574.2 billion by the end of the second quarter.
The depreciation of the Canadian dollar against most major currencies resulted in a $65.9 billion upward revaluation of foreign currency denominated international assets.
The country’s international liabilities decreased $63.1 billion in the second quarter, mainly because of declines on Canadian stock markets.
However, upward revaluations of foreign currency denominated liabilities of $20 billion, as well as investment inflows from abroad, moderated the overall decrease in international liabilities.