The Bank of Canada (the “Bank”), in its role as fiscal agent for the Government of Canada, said today it will reintroduce the morning auction of Receiver General (RG) cash balances in the coming weeks. These operations had been suspended in August 2020 due to a lack of participation.
Prior to their suspension, the morning RG auction was conducted daily at 9:15 (ET) and was part of how the government managed its Canadian dollar cash balances, ensuring sufficient cash was available to meet its operating and liquidity requirements while investing excess cash balances in a prudent and cost-effective manner. The reintroduction of these routine operations allows the government to earn a competitive market-driven rate of return on its excess cash balances.
Please see updated Terms and Conditions governing the morning auction of RG cash balances for additional information, including counterparty eligibility. Previous counterparties will remain eligible to participate and the Bank will contact them shortly to confirm their set up in Bank of Canada Auction System (BCAS).
Once a majority of participants are set up in BCAS and system testing complete, a follow-up market notice will be issued indicating the start date for the morning RG auction. Once reintroduced, subsequent auction details will then be announced in BCAS.
For further information, please contact:
Director
Financial Markets Department
Bank of Canada
Director
Financial Markets Department
Bank of Canada
Director
Funds Management Division
Department of Finance Canada