Bank of Canada Commences New Reference Rate Publication

The Bank of Canada has followed through on a plan to change
how it publishes reference FX rates to reinforce the distinction between
reference rates used for benchmark fixings and those for information purposes
only.

From March 1, Canada’s central bank began publishing new data for 26 currencies, and
stressed they were “intended for statistical, analytical and informational
purposes only”

The new
rates are published once a day, by 16:30 Eastern time (ET), in the form of a
single indicative rate per currency pair, and represent a daily average rate
for that currency against the Canadian dollar.

In spite of
announcing
the change last year
, the Bank of Canada says to allow time for users of
the its FX rates to make any necessary adjustments, it will continue to publish
existing FX rates alongside the new rates from 1 March to 28 April 2017.
This means that, during this period, the following will continue to be posted
at their usual times: noon and closing exchange rates, high and low FX rates
for a given period, and all forward exchange rates and forward points.

As of 1 May
2017, the central bank will publish the new exchange rate data and cease
publishing new data for all other existing exchange rates. It says it will
continue to publish monthly and annual averages for the new FX rates as well as
for the Canadian-dollar effective exchange rate index (CERI).

Colin_lambert@profit-loss.com

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Colin Lambert

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