The Bank of Canada today announced its intention to temporarily add assets to its balance sheet to offset the anticipated seasonal increase in the demand for bank notes. These operations have no monetary policy significance.

Beginning in December, the Bank will seek to acquire general collateral through term repurchase transactions. This operation will supplement the Bank's current asset-acquisition program. These transactions would be undertaken through all primary dealers of Government of Canada securities.

These operations will be managed with due attention to market conditions and prudent risk management. The total amount of assets acquired on any day through term repo operations, in keeping with the current asset-acquisition program, will be announced on the Bank of Canada's Web site by 4:45 p.m. These assets will also be reported in the weekly series of the Bank of Canada's balance sheet, which is published each Friday in the Weekly Financial Statistics.

For more information, contact:

Wally Speckert
Bank of Canada
613 782-8102
Marc Larson
Bank of Canada
613 782-7836