Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
XXXXXXXXXX
Dear Sir:
RE: Qualified Investment for a RRSP
This is further to your letter of March 9, 1993, wherein you requested a technical interpretation concerning foreign currency held by a registered retirement savings plan ("RRSP").
While various securities denominated in a foreign currency may be qualified investments for RRSPs, foreign currency itself is not a qualified investment for a RRSP. However, since most dividends and interest paid on such securities are usually paid in a foreign currency and the purchase and sale of them is normally transacted in a foreign currency, a RRSP may at times receive or be required to temporarily hold foreign funds. In these situations and provided the foreign currency is converted to Canadian currency or used to acquire otherwise qualified investments within a reasonable period of time (usually one month), the Department is prepared to consider the foreign currency as a qualified investment of the RRSP.
The foregoing opinions are not rulings and, in accordance with the guidelines set out in Information Circular 70-6R2 dated September 28, 1990, are not binding on the Department.
The opinions expressed in this letter are the same as those found in the letter of May 5, 1992 which was summarized in The Tax Window you referred to. Unfortunately, the summary of the letter of May 5, 1992 does not really reflect its content.
We trust our comments will be of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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