The Canadian Dollar Is At A 3-Year High But It's Not All Good News
On January 20, the Bank of Canada presented its Monetary Policy Report and touched briefly on the current surge that the Canadian dollar is experiencing.
The loonie is sitting at its highest level since early 2018 and that's mostly because of the weakness that the U.S. dollar is experiencing, said the Bank of Canada.
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$0.79 USD
The current value of the loonie.
The Money Converter shows the Canadian dollar sitting about 20 cents below the American dollar at present.
While this may sound good if you love shopping U.S. brands, Bank of Canada Governor Tiff Macklem says the added value poses a risk to the Canadian economy.
“Appreciation of the Canadian dollar creates direct downward pressure on inflation by lowering the prices of imports,” said Macklem.
“Further appreciation of the Canadian dollar could slow output growth by reducing the competitiveness of Canadian exports and import-competing production. Slower output growth would also imply more disinflationary pressures.”
Basically, the lower the Canadian dollar, the more other countries want to buy things from us because it's more affordable for them.
So, it sounds like we should get our online shopping done now but pray for things to level out for Canada's long-term success.