On 29 March 2001, the Bank of Canada announced an increase in the target for the minimum daily level of the Large Value Transfer System (LVTS) settlement balances from zero to $50 million on a trial basis, effective 2 April 2001.

The trial was viewed as a success and the Bank of Canada will typically target a minimum of $50 million for LVTS settlement balances unless otherwise indicated. The Bank will continue to target a higher level of balances on days when financing conditions are expected to be tight (for example, month ends).

For more information on the implementation of monetary policy see "A Primer on the Implementation of Monetary Policy in the LVTS Environment".

For more information on the minimum daily level of LVTS settlement balances contact:

Tom Hossfeld
Financial Markets Department
Bank of Canada
613 782-7529