The Department of Finance and the Bank of Canada will begin bilateral discussions with market counterparties with respect to changes to the margining policy for the cross-currency swaps used to fund Canada’s foreign exchange reserves held in the Government’s Exchange Fund Account.

The discussions will focus on the Government’s margining and collateral policy for cross-currency swaps to allow the Government to fund its reserves more cost-effectively and reduce its counterparty credit risk on these swaps.  These discussions are also motivated by international regulatory initiatives and Canada’s G-20 commitment to reform the over-the-counter (OTC) derivatives market.

The counterparties will be contacted directly by the Bank of Canada in the coming months.

For further information please contact:


Bank of Canada
613 782-8782