Andy, true enough, but I was responding to someone else who focused on foodstuffs. From an earlier post, I notice that you import from Hong Kong. Since the HK Dollar has managed to hold its peg against the US dollar, HK goods are going to be disadvantaged. Other businesses, of course, are advantaged: Alberta oil companies would be in deep trouble with the price of oil being so low, but their situation is mitigated by the low dollar. For me personally, the advantages and disadvantages balance out.
How much should the Bank of Canada do to improve the dollar? I'm not sure. In fact, I'm not sure they can do anything. The interest rate hike will help for a day or two at the most. But until commodity prices improve, the dollar will remain low, and may continue to fall. An interest rate hike may push some parts of the country (especially the West) into recession. But what do I know? |
