You have to promise not to belittle the fact that Canada has its own monetary policy operations. They have their own currency. They have their own central bank. Let's treat them like big girls and boys.
That said...wook at the wittle central bank. Wook at them wun monetary opewations.
These operations include the sale and repurchase agreement. It's what's known in the central bank game as an open market operation. It has a similar action to an overnight repo in the U.S. The Bank of Canada sells securities, with an agreement to buy them back the following day. The Bank of Canada conducts the sale and repurchase agreements in order to impact overnight interest rates. The process also alters the supply of money...a valuable tool in controlling the country's economy.
