Bank of Canada Canadian dollar (CAD) Exchange Rate Deals

The Bank of Canada

The Bank of Canada (BOC) is Canada's central bank. The role of central banks is to preserve the value of money by keeping inflation low and stable. They do this by controlling the interest rate at which banks can borrow.

Interest rates, inflation, and exchange rates are all intrinsically linked. When the BOC manipulates interest rates this impacts both the inflation in Canada and also the relative value of the Canadian dollar compared to other currencies.

Read our guide to the Relationship between Interest Rates and Currencies.