The Bank of Canada's primary responsibilities can be grouped into four broad functions: developing and implementing monetary policy, issuing bank notes, promoting the safety and efficiency of Canada's financial systems and providing funds management services.

Monetary policy is the Bank's primary function and most important responsibility. Monetary policy is concerned with managing the rate of monetary expansion in a way that is consistent with preserving the value of money. As part of its financial system role, the Bank oversees and provides operational support for major clearing and settlement systems, and conducts research into financial stability issues. In funds management, the Bank serves as fiscal agent for the government, advising on the management of the federal public debt and providing treasury management services. The Bank also has sole responsibility for issuing Canada's bank notes, undoubtedly its best-known product. This responsibility involves note design (including features that enhance security against counterfeiting), as well as printing, distributing and eventually replacing bank notes. Coinage, on the other hand, is produced by the Royal Canadian Mint. Lastly, as the government's fiscal agent, the Bank advises the government on matters relating to the public debt, issues government debt, maintains bondholder records, and makes payments on behalf of the government for interest and debt redemption.