F21 - International Investment; Long-Term Capital Movements

• Canada’s Cross-Border Carry Trade

  Staff analytical paper 2026-54 Bruno Feunou, Rishi Vala, Andreas Uthemann, Jean-Sébastien Fontaine

  Canada has spent more than its national income for much of the post-Global Financial Crisis period. Yet favourable asset-price and exchange-rate movements have raised Canada’s net foreign assets. Since 1990, cumulative valuation gains were about three times the current-account deficit, relaxing the adjustment needed to stabilize Canada’s external position.

  Content Type(s): Staff research, Staff analytical paper JEL Code(s): F, F2, F21, F3, F31, F32, F4, F41, G, G1, G15 Research Theme(s): Financial markets and funds management, International markets and currencies, Structural challenges, International trade, finance and competitiveness