Canadas Surplus Widened to C$13.2 Billion Last Year
Canada posted a budget surplus of C$13.2 billion ($11.8 billion) last fiscal year, its third- highest ever, as Prime Minister Stephen Harper benefited from rising commodity prices and cuts in program spending.
Canadas ninth-straight surplus was more than eight times higher than a year earlier, the finance department said in its annual financial report today. Revenue rose 4.8 percent to C$222.2 billion for the year ended March 31 and expenses fell for the first time in nine years.
The surplus, which was higher than the C$8 billion forecast in the May budget, went to paying down debt, the finance department said. That pushed the yield on Canadas 10-year bond down 7 basis points, or 0.07 percentage point, to 3.93 percent, the lowest since November. Finance Minister Jim Flaherty said some of the surplus was due to one-time charges that wont be repeated.
More : bloomberg.com
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Canada dollar steady after weak data
The Canadian dollar was steady versus the greenback on Wednesday, despite a narrower Canadian current account surplus, supported by lofty oil prices and a lower than expected upward revision to U.S. growth.
Domestic bond prices rose.
At 9:40 a.m. EDT, the Canadian unit was at C$1.1075 to the U.S. dollar, or 90.29 U.S. cents, compared with C$1.1077 to the U.S. dollar, or 90.28 U.S., at Tuesdays close.
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The Canadian dollar
Surging dollar has negative impact on Canadas international assets
Canadas net liability to foreign residents increased by $12.5 billion in the second quarter, mostly as a result of valuation changes from a rising Canadian dollar.
The stronger dollar had a more negative impact on Canadas international assets than on its international liabilities.
The net external liability - the difference between its external assets and liabilities - amounted to $148.8 billion at the end of the second quarter, 9.2 per cent higher than at the end of the previous quarter, which was the lowest since the end of 1981.
More : cbc.ca
