The Bank of Canada is the “fiscal agent” for the Government of Canada. This role includes multiple responsibilities, such as Banker and Treasury Manager, managing Canada’s foreign exchange reserves and retail (domestic) debt, and providing advice to Canada’s Department of Finance on the retail debt program.
Government Banker and Treasury Manager
The Bank manages the accounts of Canada’s Receiver General, through which almost all money collected and spent by the government flows. The Bank ensures that these accounts have enough cash to meet daily requirements and invests any surpluses in term deposits.
Foreign Exchange Reserves
The Bank also manages the government's foreign exchange reserves. These reserves provide general liquidity for the government and help to promote orderly conditions in the Canadian-dollar foreign exchange market. On very rare occasions, the Bank may directly intervene in the market to counter disruptive short-term movements in the Canadian dollar.
The government's public debt (also called domestic debt or federal debt) consists largely of outstanding government securities, such as treasury bills and marketable bonds. The Bank provides policy advice to the government on the efficient management of this debt and sells the securities at auction to financial market distributors and dealers. The main goal of the Bank's debt-management activities is to help provide stable and low-cost funding to the government.
As fiscal agent for the government, the Bank is responsible for servicing and maintaining the outstanding retail debt (Canada Savings Bonds, Canada Premium Bonds) on behalf of the Department of Finance, including operations and system support services, accounting, and communications activities.
Browse and filter Bank of Canada articles, research papers and publications about the Bank’s funds-management activities.