FX.co ★ Canada Records Foreign Divestment

Foreign investors reduced their holdings of Canadian securities by C$17.3 billion in August 2026, defying expectations for a C$23.59 billion net purchase and resulting in the first monthly net divestment of the year. Non-resident investors cut their exposure to federal government debt by a record C$17.5 billion. This drawdown was partly offset by net purchases of Canadian corporate bonds (+C$7.6 billion) and provincial government bonds (+C$1.6 billion). At the same time, foreign investors sold C$9.9 billion in Canadian equities, trimming positions across all sectors except banking. Despite August’s outflows, foreign investment in Canadian securities still reached C$161.6 billion in the first eight months of 2026, up sharply from C$27.1 billion over the same period in 2025.