06:33 AM EDT, 09/27/2024 (MT Newswires) -- The share of the world's official foreign exchange reserves that is denominated in the Canadian dollar (CAD or loonie) continues to rise, said S&P Global Ratings.

This growth in the use of the Canadian dollar is supportive of the 'AAA' sovereign rating on Canada, noted S&P Global Ratings in "Rising Demand For Its Dollar Is A Growing Credit Strength For 'AAA' Rated Canada" published on Thursday.

The Canadian dollar also represents a growing percentage of global foreign exchange turnover, and this growth has been among the strongest among all currencies of 'AAA' rated sovereigns over the past decade, it added.

"Within the small pool of sovereigns that we rate 'AAA', we expect Canada will maintain its unique position as a sovereign that controls its own currency, does not have to coordinate its policies within a monetary union, and has a currency with a rising share of the world's official foreign exchange reserves and global foreign exchange turnover," said S&P Global Ratings credit analyst Julia Smith.