In April 2010, officials from the Department of Finance and the Bank of Canada sought the views of institutional investors, government securities distributors, and other interested parties on issues relating to the management of the cash flow profile of Government of Canada securities over the medium term and on the demand for long-term bonds (nominal and Real Return).
As part of an ongoing review of collateral policy related to the Bank of Canada's Standing Liquidity Facility (SLF), the Bank is broadening the list of assets acceptable as collateral and revising its margin requirements.
Further to the 9 May 2010 announcement that the Bank of Canada and the U.S. Federal Reserve have agreed to the re-establishment of the US$30 billion swap facility (reciprocal currency arrangement), the Bank of Canada and the U.S. Federal Reserve today published the text of that swap arrangement.
In response to the re-emergence of strains in U.S. dollar short-term funding markets in Europe, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing the re-establishment of temporary U.S. dollar liquidity swap facilities.
In accordance with the schedule of term purchase and resale agreement (PRA) auctions announced on 19 January (see schedule), the Bank of Canada announced today that it will conduct a term PRA operation.