What’s Happening, Canadian Dollar?

The Canadian dollar has been sinking deeper in the last couple of days and this makes me really wonder. I thought the big recession is in the United States? Then why is it our Loonie the one affected by this financial trouble? Isn’t it Canada the country that has the biggest oil reserve in North America? Isn’t it Canada’s banks which were given the highest praises just a week ago for being the most stable in the world?

Canadian dollar sinking against the US dollar | Oct. 2008

(image from X-rates.com)

Why then is our loonie losing its luster? I cannot really explain or understand why, but to be honest there are the good and bad side to what’s happening to our dollar.

First the disadvantage. When you send money to the Philippines or to anywhere in the world, you practically have to add a little over 20% than what you originally send before this exchange rate anomaly. That’s at the present rate of exchange (Oct. 24, 2008).

If you’re oursourcing for articles like me, then that’s a real big disadvantage. If you are in other places in the world where the US dollar is the prime exchange note like in Hong Kong, our beloved Canadian dollar suddenly is not lovely anymore!

Just to think that only a few weeks ago, the Canadian and American money is almost at parity. Dang!

The only advantage now is that, Americans can now visit Canada and spend their money here and have 20% more spending power! Or suddenly, our exports to the United States is again competitive against other countries because of the continous fall in Canada’s loonie.

But that is if the U.S. and the American travelers are in the mood for spending whatever leftover resources or money they have with them. The way I look at it, most Americans would think twice or even thrice before spending any money they have with them, rich or poor. So, the end all is that – it’s still a disadvantage to Canada.

So, what now loonie? I guess we’ll just have to wait and see.

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4 thoughts on “What’s Happening, Canadian Dollar?

  1. Now, countries with strong economy like Canada feel the effect of the US economy recession.

    When will be the Philippines Government accept the fact that Philippines will be sooner or later feel the effect of this problem.

    They keep lying to Filipino people the real status of the country.

  2. Thanks for the information. I guess I’d better start researching and learn more.. We’ll be coming over there and I wonder how we could effectively cope up.

  3. my brother sent me this adoborepublic website. he said that the author of the article is noli maniquis. i have a friend back in the phils who went to canada about 10 years ago who have the same name as mentioned.
    i am now here in regina saskatchewan working as mechanical designer just in case you are the noli that i am looking for.

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