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As the Canadian economy continued to recover from the effects of the pandemic, risk management remained central to the Bank’s decisions and policy-making activities.

In 2021, the Bank continued to build its capacity for issuing a central bank digital currency (CBDC)—a digital form of money the central bank would make available to all Canadians.

The COVID‑19 pandemic caused a massive disruption to the Canadian economy. But the financial system proved to be resilient and acted as a shock absorber for the broader economy.

The Annual Report outlines the Bank’s activities and achievements in 2021. It includes the financial statements and a message from Governor Tiff Macklem.

The Annual Report outlines the Bank’s activities and achievements in 2021. It includes the financial statements and a message from Governor Tiff Macklem.

Climate change poses significant risks to the economy and financial system. In 2021, the Bank deepened its understanding of these risks and continued its efforts to reduce its carbon footprint and manage climate-related risks to its operations.

The Bank’s funds management activities in 2021 largely continued at the same heightened pandemic-related levels as in 2020. The Government of Canada continued financing its COVID‑19 support measures, issuing still-elevated amounts of federal government debt into the market.

In 2021, the Bank focused its international efforts on the global macroeconomic policy response to the evolving impacts of the COVID‑19 pandemic, global policies related to climate change and the digitalization of the economy, the future of the international monetary and financial system, and promoting and reinforcing the resilience of the international financial system.

Every five years, the Bank and the Government of Canada review and renew their agreement on Canada’s monetary policy framework. In 2021, Canada’s flexible inflation-targeting framework was renewed for 2022 to 2026.