Canadian Currency Falling Vs U.S. Dollar

In May of 2006 Canadian money hit a 28 year high with Canadian currency hitting 91.34 US cents.

This had many people I know very excited because they felt travel to the United States was now possible for them. But what they are missing is the fact that when the Canadian dollar rises too high our exports suffer resulting job losses for many Canadians.

When the Canadian dollar is low relative to other currencies our manufacturers reap the rewards of a favorable dollar compared to the US.

Right now the Canadian dollar is rising and has surpassed the US dollar. This is bad news for Canadian manufacturers who have relied on the exchange rate for competitive advantage. Not to mention the impact on the Canadian tourism industry. Canada had been a cheap vacation destination for millions of travellers worldwide, not any more! Canadian consumers who live near the US border, however, are taking advantage of the cheap shopping opportunities of cross-border shopping.

My hope for the sake of employment in Canada that the dollar continues to fall to drive our economy to new levels, think about that next time you cheer on a rising Canadian dollar. A low Canadian currency should not impact your sense of national pride. Take pride in knowing that when the dollar is low, jobs are created and with more jobs the demand on the workforce increases which creates higher wages because employers must pay more to retain employees.

So stop cheering on the Canadian dollar and hope for it to plummet to new lows. The increased salaries as a result will offset the $Can to $U.S. conversion rate.

To find the current exchange rates visit The Royal Bank Currency Conversion tool

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Get more information and reviews about Canadian financing and money matters here.

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