Canada’s net liability to foreign residents increased by $12.5 billion in the second quarter, Statistics Canada said today.

The increase was mostly as a result of valuation changes from a rising Canadian dollar, the government agency said.

The stronger dollar had a more negative impact on Canada’s international assets than on its international liabilities.

The net external liability – the difference between its external assets and liabilities – amounted to $148.8 billion at the end of the second quarter, 9.2% higher than at the end of the previous quarter, which was the lowest since the end of 1981.

The value of international assets rose $14.8 billion to $1,096.5 billion at the end of June.

Net transactions of $47.9 billion that occurred during the quarter were partly offset by the dollar, which removed $28.2 billion from the value of these assets.

At the same time, Canada’s international liabilities increased by $27.3 billion to $1,245.3 billion.

Net transactions of over $50 billion more than offset the effect of the strengthening dollar which removed $15.1 billion from the position.