Ask an Expert: Canadian Dollar
FCC Senior Economist J.P. Gervais discusses factors that impact the value of the Canadian dollar and the effects these fluctuations can have on the Canadian economy.
- There are many factors that impact the value of the Canadian dollar.
- When the price of commodities goes up, the Canadian dollar goes up.
- An increased demand for Canadian products in world markets results in an increased demand for Canadian dollars in financial markets.
- Any fluctuation in dollar value will be felt throughout the supply chain.
- A high dollar hurts exports but can decrease import costs.
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