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Canadian Dollar is almost the weakest it's ever been
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| Jayx1 |
I'm not comparing it to the US dollar because it's at a record low against the Euro at the moment.
The Canadian dollar is nearing record lows against almost every currency in the world. If the US dollar were at the same strength as it was 3 years ago it would be worth 57 cents US today. It's time we stop comparing the strength of our dollar against solely the US dollar because this is an optical illusion. Our dollar has never been in worse shape. |
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| walkindude |
| Why would we want to to be stronger than other countries...its because of this weakness that we have increased our exports to these countries other than the US. Averting somewhat of a decline in our growth. It screws anyone from Canada, travelling to these other countries.... but until the US starts getting stronger..we should be happy with the decline in value. |
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| djbruuen |
| theres never a happy medium in where our dollar lies. there will always be those who can benifit, and those who it will drastically hurt. the CDN dollar is back down to 81cents now, which is prolly a good thing, because our high dollar was getting dangerous, and canadian business were doing nothing to accomodate the difference. |
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| {b.s.e.} |
| eh, who cares? it's not like any of us have any sort of sway in the world economic market, so.. just spend your money and stop whining. |
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| USMC_Greg |
| The Canadian dollar is artificially deflated so that we promote other countries to buy our . Having a devalued dollar is good |
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| MarkT |
djbruuren is right in saying that there are those who benefit and those who don't.
hit up the Bank of Canada's website for detailed info.
Jayx1 saying that our dollar is really weak means very little on its own...from some perspectives that's a great thing...from some, not so great.
Consumers would love to have a strong dollar, low unemployment, low inflation, a low Prime rate, low fixed mortgage rates (tied to bond yields, not the Prime rate), high savings rates at banks, etc.
anyone with OAC or 1st year univeristy Economics knows that it's economically IMPOSSIBLE to have all of those things at once. |
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| Jayx1 |
| quote: | Originally posted by Pettiscool
source? |
Go compare the dollar to any major currency. There is your source. |
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| LoCa |
| quote: | Originally posted by Pettiscool
source? |
here is a good one.
CAD 1 = 1.61782 EURO
yaaaaaayyyyyyyy at this rate i'll be rich when i come back to Canada with my euros :D |
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| DigiNut |
| quote: | Originally posted by USMC_Greg
The Canadian dollar is artificially deflated so that we promote other countries to buy our . Having a devalued dollar is good |
Seeing as how our primary trading partner is the USA, it's actually not so good unless the U.S. dollar is strong.
Even if the USD were strong right now, that still does not make a devalued dollar good. If we have to devalue the dollar in order to create an export market, it is generally a sign of either poor manufacturing or low productivity. The net effect of low productivity + devalued dollar is economic assets simply disappearing - goods are sold to a foreign market and the respective infusion to the Canadian market is less than what those goods were actually worth. So even though exports increase, the actual "income" hasn't really changed. And Canadian consumers are hurt a lot on the import side.
Obviously there's a crossover point - as with everything else in economics, it's the law of diminishing returns. Devaluing a little bit to *just* beat out another country's domestic market might raise exports a huge amount while having insignificant consequences to imports, and be good overall. But if you keep devaluing and devaluing then you end up killing Canada's domestic market and doing more harm than good. |
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| Jayx1 |
| Devaluating a currency happens when you are a 3rd world country and no one has confidence in your currency. it also makes the overall population poorer which can only be mitigated by a strong domestic manufacturing sector. Since our manufacturing sector is being outsourced to foreign countries more and more every year, a weak currency will only mean that our cost of living will go up. |
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