What We Do

Banker to the Government
In its role as banker to the Government, the Central Bank provides advice, maintains deposit accounts, receives foreign currency deposits, settles foreign currency transactions and performs agency and registrar functions for government securities.

Just as corporations and individuals hold deposit accounts at commercial banks, the government holds deposit accounts at the Central Bank. These accounts are used for receiving funds, making payments and clearing cheques issued by government departments. These deposits are also used to meet payments for foreign goods and services as well as for debt servicing.

The Central Bank issues treasury securities on behalf of the government. Treasury bills and notes have traditionally been issued through an auction system. In July 2004, the Bank assumed responsibility for managing the auction of government bonds and performs the functions of registrar and paying agent. Prior to this, government bonds were issued largely through a group of underwriters. The auction system, which is currently based on the single price method, is semi-automated and will be fully automated and integrated with the payments system in 2005. The auction system facilitates a broader distribution of securities and promotes orderly arrangements in the market.