Source: http://www.theglobeandmail.com/report-on-business/top-business-stories/bets-against-the-canadian-dollar-surge-again/article17634141/
Article Date: March 24, 2014
The latest report from the U.S. Commodities Futures Trading Commission is blaming the Bank of Canada for the sloping Canadian dollar. The CFTC says "The Canadian dollar is trading at its lowest level since July 2009 and
much of it is due to an implied weak Bank of Canada policy on interest
rate expectations." It is crazy how this is a factor in a strong dollar. I for one 'enjoy a low interest rate', the banks of the world are rich enough. If they are showing profit from rates on mortgages at just greater than 3%, how is it better to take money off my table with higher interest rates? So the banks can show strength to represent our countries wealth. How about leave the money in my pocket? Chances are I am spending it right back into the economy anyway! Meanwhile the rest of the worlds economies are having a huge impact. You may not know it, but as China's manufacturing sector is expected to slow. You can be sure to see another impact on our dollar.
I really don't want to see the Canadian dollar drop. I know it's good for both the Canadian and U.S. economy, but it's harder on my pocket book as a cross border shopper.
ReplyDeleteI agree with Kelly! we can't afford as a country to have such a low dollar value, because with that it causes Canadians to go else where like the United States to do their shopping causing Canadian business owners to lose out in profit.
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ReplyDeleteFrom my point of view a strong dollar means a healthy economy for Canadians. When it comes to why the dollar is low and the interest rates are low as well, I can not begin to comprehend what that entails. From my understanding the instability in the United States and the recession did allot of damage to the country, but Canada was not effected as much as the US. We remained somewhat stable and although there were some effects to the economy, the Government of Canada to action and to the individual Canadian we hardly saw the effects. The dollar will rebound as I am sure the financial leaders of this country will act as diligently as in the past to make it so.
ReplyDeleteGreat Forum. Enjoyed all. I plan to join the snowbirds also. We have another year or so to finish off our temporary jobs and the paying off of our retirement home before we can entertain the idea of breaking up our long cold Canadian winter. We had very close friends who spent the winter south this year, and are loving it!
ReplyDeleteI am sure that the increase over the past five years is the "baby boomer" are retiring and well....why not soak up that sun in the dead of our bitter winters!
Your writing give way to thought about our Canadian dollar being sent south too!!!