• Keith&Jacqueline

What is the main role and function of the Bank of Canada?

Its principal role is "to promote the economic and financial welfare of Canada," as defined in the Bank of Canada Act.

  • Monetary policy: The Bank influences the supply of money circulating in the economy, using its monetary policy framework to keep inflation low and stable.

  • Financial system: The Bank promotes safe, sound and efficient financial systems, within Canada and internationally, and conducts transactions in financial markets in support of these objectives.

  • Currency: The Bank designs, issues and distributes Canada’s bank notes.

  • Funds management: The Bank is the "fiscal agent" for the Government of Canada, managing its public debt programs and foreign exchange reserves.

  • Retail payments supervision: Under the Retail Payment Activities Act, the Bank will be responsible for supervising payment service providers.

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