Bank of Canada Examines Loonie Fixings

The Bank of Canada said in an internal report that it’s examining the way its own reference rate for the Canadian dollar is set as pressure builds globally to prevent alleged manipulation of benchmark currency rates.

The methodology used to set most currency benchmarks, including the noon rate for the Canadian dollar, leaves foreign-exchange markets open to manipulation, according to documents obtained by Bloomberg News under the nation’s Access to Information law. The Bank of Canada said it views possible collusion between dealers as a “serious concern” and has produced at least three studies on its own reference rates since the allegations involving London-based traders were first reported by Bloomberg News in June.