The Bank of Canada lowered it's interest rate again today causing our dollar to drop yet again. A couple of years ago we were the darling of the G7 (8?) that could do no wrong. We were seen as the poster child for properly attempting to manage our budget & spending as contrasted to all the rest. Our dollar was basically par for quite a while.
Well, our policy has continued to where we have a more or less 'balanced budget' - almost unheard of these days - but our dollar is now tanking against the US whose deficit & debt (amongst other counties) is still increasing, astronomical & not sustainable.
I don't get it. Unfortunately, Axiom & all other Canadian companies have to do what they have to I guess...
TAM
Perception, my friend. Even though oil production really only makes up about 3% of Canada's total GDP, in the eyes of some international investors, we are still perceived as a commodity economy and along with the over supply of oil in the world, prices over the last year have plummeted resulting in the dropping dollar. The economy also is some what limping along tied in generally with the U.S. economy whose alleged turnaround, in the eyes of many economists is a sham. There you have fewer people employed than before the financial meltdown, stagnating wages along with what is now a weak retail sector. It is called the global economy and it affects everyone.
