Translation please, global finance people: To what degree is this another desperate attempt to sell dirty tar sands? They would certainly welcome a lower currency, which helps drive exports through lower prices on goods (and bads) sold in the US. In fact, the central bank said... stronger US demand, as well as the recent depreciation of the Canadian dollar, should help to boost exports and, in turn, business confidence and investment. In the monetary policy report, the central bank warned that even in the face of its depreciation, the (Canadian) dollar remains strong and will continue to pose competitiveness challenges for Canada’s non-commodity exports. That statement from the report certainly caught the market’s attention. As chief economist Douglas Porter of BMO Nesbitt Burns put it, it’s as close as they will come to suggesting the loonie is still too strong and that policy makers are pleased by the loonie’s slide.
Posted on: Mon, 27 Jan 2014 00:49:06 +0000
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