Executive summary

Canadian corporations held $476 billion dollars ($325 billion ofCanadian currency plus $151 billion worth of foreign currency) asof the third quarter of 2011⊃1;, an amount that has been buildingconsistently since the financial crisis. This accumulation mirrorsthe record $2.05 trillion in cash that U.S. corporations held atmid-year 2011⊃2;.

This build up is, in part, a response to liquidity worriesduring the financial crisis, which caused companies to build warchests, and in part due to a lack of prudent utilizationopportunities. When opportunities return, companies will deploytheir cash, although balances will probably remain higher thannormal.

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