Canada's net foreign assets surge $619 billion in second quarter, largest quarterly gain on record
Rising global stock markets and a weaker Canadian dollar boosted Canada's international investment position to $1.945 trillion at the end of June, Statistics Canada reported.
Sources · StatCan - The Daily
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Canada's net foreign asset position increased by a record $619.2 billion in the second quarter of 2026, reaching $1.9455 trillion — the largest quarterly gain in the nation's history, Statistics Canada reported Thursday.
The surge reversed two consecutive quarters of decline. The increase was driven by upward revaluation of investments as global stock markets climbed and the Canadian dollar weakened against major currencies.
Market price changes contributed $495.8 billion to the second-quarter gain. The U.S. stock market surged 14.9 per cent during the period, the European market rose 13.6 per cent, and the Japanese market climbed 37.2 per cent — all providing significant boosts to Canadian investment portfolios. Canada's own stock market advanced 6.4 per cent, a more modest gain.
Exchange rate fluctuations added another $123.7 billion to the foreign asset position. The Canadian dollar depreciated 1.9 per cent against the U.S. dollar, 0.9 per cent against the euro, and 2.0 per cent against the British pound, while appreciating just 0.2 per cent against the Japanese yen. Since Canada holds 66.7 per cent of its international assets in U.S. dollars and 97.1 per cent in foreign currencies overall, a weaker loonie increased the measured value of those holdings.
Canada's international assets held as equities represent 69.8 per cent of total assets, while international liabilities held as equities account for 49.3 per cent of liabilities — making the portfolio particularly sensitive to stock market swings.
Canada's net foreign asset position with the United States alone increased by $418.5 billion in the quarter to $1.6678 trillion, while the position with the rest of the world gained $200.7 billion to $277.7 billion. Canada's total international assets expanded by a record $1.0934 billion to $12.386 trillion, with market revaluation accounting for $723.8 billion of that growth and exchange rate changes contributing $174.8 billion.
The record quarterly increase reflects the combined effect of a strong performance from foreign equities in Canada's portfolio and the currency movements that amplified their measured value in Canadian dollars.
Which foreign stock markets represented the largest share of Canada's international equity holdings at the end of Q2 2026?
How did the composition of Canada's foreign investments shift during the period, and are there concerns about concentration risk in any particular market or asset class?
We'll update this story as answers emerge.
By the numbers
By how much did Canada's net foreign assets grow in the second quarter of 2026?
Canada's net foreign assets increased by $619.2 billion in the second quarter of 2026, the largest quarterly gain in the nation's history.
How much of the second-quarter gain came from market price changes?
Market price changes contributed $495.8 billion of the $619.2 billion quarterly gain, driven by strong performances across global stock markets including a 14.9 per cent surge in the U.S., a 13.6 per cent rise in Europe, and a 37.2 per cent climb in Japan.
How much did exchange rate fluctuations add to Canada's net foreign asset position in the second quarter?
Exchange rate fluctuations added $123.7 billion to Canada's net foreign asset position in the second quarter, as the Canadian dollar weakened against the U.S. dollar, euro, and British pound.
