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.
Key Points
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.
