The Senate Committee on Banking, Trade and Commerce has released a report on the state of the Canadian loonie.
The report, titled The Fluctuating Canadian Dollar: What it means for Canadians, explains the causes and consequences of the declining dollar.
The ailing loonie has been both a burden and a boon.
The decline of oil prices may be beneficial to Canadians’ gas tanks, but it isn’t as kind to our loonie — oil prices and the dollar generally go hand in hand, and a $10 decrease in oil prices causes the dollar to fall by between three and five cents.
The impact :
This exchange rate fluctuation equals higher import prices. Since the dollar began its decline, Canadian consumers have been paying 30 to 40 % more for American-made goods. Canadians venturing to the U.S. may have also felt the sting of pricier than usual travel arrangements.
The bright side:
Canada’s manufacturing and tourism sectors are booming. Over 37,000 jobs have been created in the manufacturing sector. We’ve also had more visits from our neighbors to the south: U.S. visits to Canada increased by 8 % between 2014 and 2015, boosting Canada’s gross domestic product from $4 billion to $5 billion.