OTTAWA (Reuters) - The sharp appreciation of the Canadian dollar resulted in Canada falling into a net foreign debt position at the end of the second quarter after two quarters in a net asset position, Statistics Canada said on Friday.
Canada was in a net foreign debt position of C$34.8 billion ($32.2 billion) at the end of June compared with a net asset position of C$10.4 billion at the end of March and C$6.7 billion at the end of December 2008.
The international investment position is a snapshot of the value of Canada’s assets and debt to the rest of the world.
The deterioration in the second quarter was largely due to a 8.5 percent rise in the value of the Canadian dollar versus the U.S. dollar in the period, which lowered the value of foreign currency denominated foreign assets.
Reporting by Louise Egan, Editing by Chizu Nomiyama