Uncategorized

• July 27, 2021

  CFEC Releases Results of April 2021 Foreign Exchange Volume Survey

  The Canadian Foreign Exchange Committee (CFEC) released today the results of its April 2021 semi-annual survey of foreign exchange volumes in Canada.

  Content Type(s): Press, Market notices Source(s): Canadian Foreign Exchange Committee
• July 26, 2021

  Operational details for upcoming secondary market purchases of Government of Canada securities (August 3-13)

  As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP).

  Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program
• July 26, 2021

  CARR Meeting (July 26, 2021)

  Content Type(s): Meetings Source(s): Canadian Alternative Reference Rate Working Group
• July 26, 2021

  Historical Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility – July 26, 2021 to January 30, 2025

  The Bank of Canada (the Bank), through its Standing Liquidity Facility (SLF), provides access to liquidity to those institutions that participate directly in Lynx.

  Content Type(s): Collateral Policy Source(s): Standing Liquidity Facility

• Cash and COVID-19: The impact of the second wave in Canada

  Staff Discussion Paper 2021-12 Heng Chen, Walter Engert, Marie-Hélène Felt, Kim Huynh, Gradon Nicholls, Daneal O’Habib, Julia Zhu

  The COVID-19 pandemic significantly increased the demand for cash. Cash in circulation increased sharply from March through December 2020, particularly in the early months of this period. Although use of electronic methods of payment also increased significantly, cash use for payments remains high for low-value transactions and among certain demographic groups.

  Content Type(s): Staff research, Staff discussion papers Research Topic(s): Bank notes, Central bank research, Coronavirus disease (COVID-19), Digital currencies and fintech, Econometric and statistical methods JEL Code(s): C, C1, C12, C9, E, E4, O, O5, O54

• Tariffs and the Exchange Rate: Evidence from Twitter

  Staff Working Paper 2021-36 Dmitry Matveev, Francisco Ruge-Murcia

  Do tariffs affect exchange rates? We look at President Trump’s tweets during talks on the North American Free Trade Agreement and find that anticipation of higher tariffs on imports from Canada and Mexico led to an appreciation of the US dollar relative to Canadian and Mexican currency.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rates, Trade integration JEL Code(s): F, F1, F13, F3, F31
• July 21, 2021

  Sharon Kozicki appointed as Deputy Governor of the Bank of Canada

  Media Relations Ottawa, Ontario

  The Board of Directors of the Bank of Canada today announced the appointment of Sharon Kozicki as Deputy Governor, effective August 2, 2021.

  Content Type(s): Press, Press releases
• July 20, 2021

  Bank of Canada announces changes to its Standing Liquidity Facility Collateral Policy

  To provide support for the upcoming introduction of the Lynx payment system, the Bank of Canada is announcing changes to the Standing Liquidity Facility (SLF) Collateral Policy that will be effective July 26, 2021.

  Content Type(s): Press, Market notices Source(s): Standing Liquidity Facility

• The Positive Case for a CBDC

  Staff Discussion Paper 2021-11 Andrew Usher, Edona Reshidi, Francisco Rivadeneyra, Scott Hendry

  We discuss the competition and innovation arguments for issuing a central bank digital currency (CBDC). A CBDC could be an effective competition policy tool for payments. A CBDC could also support the vibrancy of the digital economy. It could help solve market failures and foster competition and innovation in new digital payments markets.

  Content Type(s): Staff research, Staff discussion papers Research Topic(s): Digital currencies and fintech, Financial institutions, Financial stability JEL Code(s): E, E4, E42, E5, E58, L, L4, L5

• Exploring the potential benefits of inflation overshooting

  Staff Analytical Note 2021-16 Robert Amano, Marc-André Gosselin, Kurt See

  After a period with the interest rate at the effective lower bound, temporarily overshooting inflation may offer important economic benefits. This may be especially true for vulnerable segments of the population, such as workers with low attachment to the labour force and the long-term unemployed.

  Content Type(s): Staff research, Staff analytical notes Research Topic(s): Inflation targets, Labour markets, Monetary policy, Monetary policy framework JEL Code(s): E, E3, E31, E5, E52, J, J2, J20