FX.co ★ Foreign Investment in Canada Falls For 2th Month

In March 2025, foreign investors significantly reduced their holdings in Canadian securities, resulting in a net withdrawal of CAD 4.2 billion. This followed a downwardly revised decline of CAD 10.4 billion in February and was contrary to market predictions, which anticipated a CAD 5.2 billion inflow. The decrease was largely due to a substantial CAD 12 billion sell-off in equities by non-resident investors. This trend aligns with a broader global sell-off of risk assets, spurred by uncertainties surrounding US tariffs and their potential impact on global economic growth. On the other hand, debt securities experienced net inflows totaling CAD 8.7 billion. Concurrently, Canadian investors increased their acquisition of foreign securities, with a net purchase amounting to CAD 15.6 billion during the same timeframe.