Understanding the drivers of the Canadian dollar

FCC Senior Economist Leigh Anderson explains how the value of the Canadian dollar is decided and why a lower loonie can benefit the Canadian ag industry.

Did you know that we host learning events across Canada on topics just like this? Find an FCC event near you.

Video Highlights

  • Supply and demand (most notably the demand for oil) and interest rates are the key drivers in the value of the Canadian dollar
  • Understanding what affects the Canadian dollar is important because most agricultural commodities are priced in U.S. dollars
  • In most cases, a lower loonie is actually good for the Canadian ag industry