Funds management

As the fiscal agent and banker for the Government of Canada, the Bank of Canada carried out a variety of activities in 2024. These included:

• administering the federal government’s domestic cash balances
• conducting debt auctions and cash management bond buyback operations
• purchasing Canada Mortgage Bonds on behalf of the Government of Canada
• advising the Government of Canada about issuing Canadian-dollar green bonds
• managing the assets and liabilities of the Exchange Fund Account (EFA)

The Bank also provided banking, settlement and custodial services for other clients, such as financial market infrastructures, federal Crown corporations and other central banks. At the same time, the Bank:

• reviewed and enhanced its controls for managing risks related to financial crimes
• managed its own investments and liabilities as part of the ongoing normalization of its balance sheet

The value of domestic Government of Canada bonds issued in 2024 was $235.5 billion. The total stock of domestic marketable debt – Government of Canada bonds and treasury bills – is projected to reach $1,160 billion by the end of the 2024–25 fiscal year.

Supporting the Government of Canada’s domestic funding and liquidity needs

Bank staff worked closely with the Department of Finance Canada and consulted with financial market participants to seek feedback on the Government of Canada’s debt management strategy. Areas of focus included:

• raising stable and low-cost funding for federal programs and services
• maintaining a liquid and well-functioning market for Government of Canada securities
• supporting the move from two days to one day for settlement of GoC debt in 20241

Advising the Government of Canada on its investment strategy and debt issuance

As part of its funds management services, the Bank provided advice to the Government of Canada on several initiatives:

• Re-introducing morning auctions of Receiver General cash balances—These operations had been suspended in August 2020 due to lack of participation. They were restarted on February 21, 2024.
• Purchasing Canada Mortgage Bonds—The Bank helped implement the program and purchased $29 billion of Canada Mortgage Bonds on behalf of the Government of Canada in 2024.
• Issuing green bonds—The federal government issued $6 billion of green bonds in 2024. As part of the syndication process, the Bank provided debt management and expert market advice.
• Introducing a temporary, one-month treasury bill—This instrument supported the Canadian money market’s orderly move away from bankers’ acceptances.

Also in 2024, the Bank reviewed and conducted market consultation on the Government of Canada’s Debt Distribution Framework. The review looked at aspects of the framework’s design to ensure it continues to be an effective means of raising funds.