Update on Selection Process for Governor of the Bank of Canada Released by the Special Committee of the Bank's Board of Directors

In accordance with the Bank of Canada Act, the Governor of the Bank of Canada is appointed by the independent directors with the approval of the Governor in Council (federal Cabinet). Following an announcement on 25 April 2007 that the current Governor, Mr. David Dodge, would not be seeking reappointment at the end of his seven year mandate on 31 January 2008, the Bank's Board of Directors initiated a process to find a replacement.

A Special Committee composed of the Bank's independent Directors, and chaired by the Lead Director, Mr. Jean-Guy Desjardins, met on 12 June to discuss the details of the recruitment process. The executive recruiting firm of Ray & Berndtson, which was selected following a Request for Proposal process, attended to provide assistance. The Committee approved an advertisement which was subsequently placed in the Globe & Mail, the National Post, La Presse and The Economist. The advertisement was also posted on the Bank's web site and the government's Governor-in-Council Appointments web site.

On 13 July, the Special Committee met to receive a progress report and discuss next steps. Over the summer, the Special Committee will meet to review potential candidates, conduct interviews, identify a short list and complete the appointment process with the approval of the Minister of Finance and the federal Cabinet.

The recruitment process is expected to be completed by the fall.