Foreign Investment in Canada Rises to 10-Month High

Foreign investors increased their holdings of Canadian securities by C$26.7 billion in July of 2025, gaining traction from the revised C$1 billion in the previous month, to mark the sharpest net investment since September of 2024. The surge was carried by a C$14.8 billion net increase in holdings of debt securities, mostly through money market instruments (C$11.1 billion) as the Bank of Canada held its key rates unchanged, while net holdings of bonds rose by C$3.7 billion. Additionally, holdings of equity in Canadian companies rose by C$11.8 billion, aligned with the record-high levels in benchmark TSX indices during the month. In the meantime, Canadian investors increased their holdings in foreign financial assets by $17.4 billion.