The Canadian government will soon begin issuing US dollar-denominated bonds, the country's Department of Finance said in a statement on Monday
WASHINGTON (Pakistan Point News / Sputnik - 10th May, 2021) The Canadian government will soon begin issuing US dollar-denominated bonds, the country's Department of Finance said in a statement on Monday.
"Today, the government of Canada announced its plan to issue a US dollar-denominated global bond later this week, subject to market conditions," the statement said.
The Finance Department explained the move is an effort to diversify the country's assets and encourage long-term economic growth amid a pandemic-era downturn.
The funds will be held in their Exchange Fund Account (EFA), the Finance Department said.
US-dollar-denominated bonds are offered by foreign governments due to the relative stability of the Currency for outside investors, especially from the United States. The US Dollar is currently valued slightly higher than the Canadian dollar, although officials from the Federal Reserve have recently expressed concern over the potential for higher inflation.
