The Rising Canadian Dollar
Posted by Johan Cyprich on 29 Jul 2007 | Tagged as: Business
Once referred to as the Canadian Peso, the Canadian dollar is gaining ground against the US dollar. On July 27, it closed at just under $0.94 USD. Its only a matter of time before the Canadian dollar is worth more. Why is the US dollar losing value against almost all international currencies? Should the blame be placed on President George Bush?
The US dollar is doing poorly against many other currencies, including the Euro and the Pound. The average Canadian may be proud of the results last Friday, but those who do business in American dollars won’t be joining their party.
All of the affiliates I use in my online ads pay me in US dollars. The buying power is less when the currencies are close to each other like this in value. Below is a chart comparing the value of the Canadian dollar versus the US dollar over a period of 5 years. It shows the Canadian dollar going from less then $0.65 USD to around $0.94 USD. It doesn’t take an economist to see that the Canadian dollar will be worth more than the American dollar soon. The last time the our dollar was worth more was in April 25, 1974 when it was $1.04 USD.
Is a weak US dollar good for the Canadian economy? Probably not. Tourism here will be less appealing when it costs more. Cross border shopping will decrease as well.
I would like to see the Canadian dollar go back to its value in 2002. A rising Canadian dollar makes exports to the US more expensive, which is not good for us since exports south are a large part of our economy. On the other hand, industries in Canada benefit from a strong local currency because they can make foreign purchases at a lower cost.
| Related posts: | |
|
|
Share this post:
Follow Me:
Did you find this post interesting and useful? You can keep up to date on this blog by subscribing to my RSS feed, or you can have new posts sent to you by e-mail. You can also follow me on Twitter.
No Comments »