David Dodge will not seek a second term as governor of the Bank of Canada, the bank announced Wednesday.

In a brief statement, the central bank said Dodge has informed the finance minister and the bank's board that he will step down once his term ends on Jan. 31. He will be 64 at that time. 

David Dodge, governor of the Bank of Canada, will end his seven-year term in January.
(Canadian Press/Adrian Wyld)

The bank said he was giving nine months notice "to facilitate the selection and appointment of his successor."

A special committee of independent directors will be formed soon to search for a replacement. 

Finance Minister Jim Flaherty praised Dodge's leadership.

"Dodge has served Canada in the finest tradition of central bankers, and his influence has been felt not only here but around the world,'' he said in a statement.

"His strong leadership during the turbulent post-9/11 period has helped Canada lead the Group of Seven countries in economic growth."

Many economists also gave him high marks.

"When he took over in 2001, the U.S. was in a recession, and then there was 9/11 and the unprecedented run-up in the value of the Canadian currency," said Douglas Porter, deputy chief economist at BMO Capital Markets.

"Through it all, inflation stayed at about two per cent and we have the best employment numbers in 30 years."

Dodge became the Bank of Canada's governor in February 2001.

Before assuming that job, he was deputy minister of finance from 1992 to 1997. Before that, he was the department's assistant deputy minister, where he oversaw the implementation of the GST.

He has also held senior positions in what was then known as the Central Mortgage and Housing Corporation, the Anti-Inflation Board (where he was director of research), and the Department of Employment and Immigration, where he directed the Labour Market Development Task Force.

With files from Canadian Press