Meanwhile, Canadian investors added $1.3 billion to their holdings of foreign securities, purchasing equities while selling debt instruments.
It was the ninth straight month that Canadian investors increased their foreign holdings.
Foreign investors removed $4.6 billion from their holdings of Canadian short-term instruments, primarily federal treasury bills, in January after accumulating $26 billion worth in the second half of 2011.
This was partly offset by foreign investment of $1.1 billion in provincial government and corporate paper.
Foreigners reduced their holdings of Canadian stocks by $1.4 billion in January, as Canadian equity prices gained 4.2 per cent in the month.
Canadians added a further $3.4 billion of foreign stocks to their holdings in January.
They also reduced their holdings of foreign debt instruments, mainly U.S. government bonds and treasury bills, by $2.1 billion in January.