David Dodge has informed the Bank of Canada’s board of directors and the minister of finance that he will not seek a second term as governor.

Dodge’s term continues until Jan. 31, 2008, but he indicated he is making his plans known well in advance to facilitate the selection and appointment of his successor.

The central bank’s board of directors will shortly form a special committee comprised of the independent directors whose mandate is to undertake a recruitment process for the selection of a governor. Governors of the Bank of Canada are appointed by the independent directors, subject to the approval of the minister of finance and the federal cabinet. The selection process is expected to be completed by the fall.

Dodge became governor of the bank in February 2001, following many years in the federal public service, including positions as deputy minister of finance and deputy minister of health.

Jim Flaherty, minister of finance, said, “I would like to thank governor David Dodge for his extremely successful term at the Bank of Canada and offer my best wishes as he prepares to leave the central bank in January 2008.”

“Governor Dodge has served Canada in the finest tradition of central bankers, and his influence has been felt not only here but around the world. In particular, his strong leadership during the turbulent post-9/11 period has helped Canada lead the Group of Seven countries in economic growth,” Flaherty added. “As minister of finance, I have appreciated his wise counsel and advice, as well as his steady hand as head of the Bank. Our government respects his decision not to seek another term and congratulates governor Dodge on his distinguished career in Canada’s public service.”