August 21, 2003
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August 21, 2003
Real Return Bond Funding Review
The Real Return Bond (RRB) program was created in line with the Government's fundamental objective of raising stable, low-cost funding. -
August 21, 2003
Summer 2003 Consultation Document
The purpose of these consultations is to obtain the views of market participants on issues relating to the design and operation of the government Real Return Bond (RRB) program. -
August 21, 2003
Dollarization in Canada: An Update
The authors describe a special survey of the payment and financial-reporting practices of Canadian firms conducted by the Bank of Canada's regional offices to determine if the U.S. dollar has started to displace the Canadian dollar as a preferred unit of account. A cross-section of firms was asked what currency (or currencies) they used: (i) for quoting sales to Canadian customers, (ii) for quoting prices to foreigners, (iii) for reporting their financial results, and (iv) for quoting salaries and wages. The survey results reported here extend some earlier results reported in a previous Review article by Murray and Powell. The data indicate that, despite the dominance of the U.S. dollar in world trade and as an international standard of value, use of the U.S. dollar in Canada is very limited. The vast majority of Canadian firms price their products and keep their financial statements in Canadian dollars, and very few workers in Canada have their salaries paid in a foreign currency. The Canadian dollar is still strongly preferred for most pricing and financial-reporting activities in Canada, and there is very little evidence of "dollarization."