While liquidity in term money markets in Canada is currently better than it was in December and better than that now experienced in other jurisdictions, it has not yet returned to historical norms. There are a number of ways in which the Bank of Canada is seeking to improve its ability to provide liquidity to the system.
First, the Bank has indicated that we plan to expand the list of collateral that we will accept in our Standing Liquidity Facility. Last week, we issued a consultation paper on our plans to take some types of ABCP as collateral by 31 March. We also plan to accept U.S. Treasuries as collateral by the middle of the year.