Canada's international transactions in securities, March 2025

Canadian investors acquired $15.6 billion of foreign securities in March, mainly in US bonds. Meanwhile, foreign investors reduced their exposure to Canadian securities by $4.2 billion, marking a second consecutive monthly divestment.

As a result, international transactions in securities generated a net outflow of funds of $19.9 billion from the Canadian economy in March, bringing the total outflow to $45.9 billion in the first quarter.

Chart 1: Canada's international transactions in securities

Source: Table 36-10-0028-01.

Strong Canadian investment in US securities

Canadian investors increased their exposure to foreign securities by $15.6 billion in March. Investors largely targeted US bonds and, to a lesser extent, US shares.

Chart 2: Canadian investment in foreign bonds

Source: Table 36-10-0028-01.

Canadian investors increased their holdings of foreign debt securities by $8.7 billion in March. While investors added US bonds (+$9.3 billion) and US government money market instruments (+$1.8 billion) to their portfolios, they reduced their holdings of non-US foreign debt instruments by $1.8 billion.

At the same time, Canadian investors acquired $7.0 billion of foreign equity securities in March, down from $27.8 billion in February. In March, acquisitions of $5.0 billion in US shares contributed the most to the increase, while acquisitions of non-US shares amounted to $2.0 billion. The investment in US shares followed a sizable $29.9 billion investment in February. US share prices, as measured by the Standard and Poor's (S & P) 500 composite index, were down in March, after reaching an all-time high in February.

Foreign divestment in Canadian shares continues

Foreign investors reduced their holdings of Canadian securities by $4.2 billion in March. Foreign investors sold Canadian equity securities, while they acquired Canadian debt instruments.

Chart 3: Foreign investment in Canadian equity and investment fund shares 

Source: Table 36-10-0028-01.

In March, non-resident investors reduced their exposure to Canadian shares by $12.0 billion, following a significant $21.9 billion divestment in February. On an industry basis, the divestment in March was led by shares in the banking, trade and transportation, and energy and mining industries. Canadian share prices, as measured by the S & P/Toronto Stock Exchange composite index, decreased by 1.9% in March.

At the same time, non-resident investors acquired $11.9 billion of Canadian bonds in March, while they reduced their exposure to Canadian money market instruments by $4.1 billion.

Chart 4: Foreign investment in Canadian bonds, by sector of issuer

Source: Table 36-10-0028-01.

The activity in the Canadian bond market in March reflected foreign acquisitions of $13.1 billion of federal government bonds, which were moderated by a divestment in federal government enterprises bonds. The foreign divestment in Canadian money market instruments mainly targeted federal government paper (-$4.4 billion).

In March, the Bank of Canada reduced its policy rate to 2.75%, and the Canadian dollar appreciated by 0.4% against the US dollar.

Table 1: Canada's international transactions in securities