$1.00 CDN =$1.00 US!!!

Friday, September 21, 2007 03:57 AM

For the first time in more than 30 years, the Loonie was at par with the U.S. dollar on Thursday.

While the event sparked a cheer from the trading floor of the Toronto Stock Exchange, those who depend on exports to the U.S. were anything but happy.

The strong Canadian dollar has been blamed as one of the key contributing factors to the downturn in forestry. Our lumber is just too expensive.

Combine that with low process for lumber and the slumping U.S. housing market, and there is cause for serious concern in the forestry industry.

Federal Finance Minister Jim Flaherty is concerned enough that he placed a personal call to the head of the Bank of Canada. Flaherty won’t say what they talked about, but told a news conference he might be able to help manufacturers weather the dollar storm by providing some tax relief. The Minister said there are pros and cons to a high dollar, "It helps Canadian manufacturers acquire new technology, but then it also puts some pressure on manufacturers, particularly the suddenness of the depreciation of the US dollar."

Previous Story - Next Story

Email |

Print |

Facebook |

Twitter |

Digg |

Del.icio.us

Posted on Friday, September 21, 2007 03:57 AM in Money by 250 News

Return to Home

Comments

Posted by: pulpworker on September 21 2007 7:57 AM

Now if retailers could drop their prices to match, we could start buying locally.

Posted by: uyterlindekel on September 21 2007 6:30 PM

No kidding! I'd love to buy a book at the USD price. Somehow I don't think they'll go for it.

Posted by: dgdiggler on September 21 2007 7:01 PM

Yay Ebay! I dont think the average canadian gives a darn about the US dollar depreciation.

Posted by: camoose on September 21 2007 9:23 PM

I guess we'll just have to make several trips a year to the US to get things at a decent price. It would be well worth while to shop for a new auto in the States. High on my list would be cheap electronics and no rip off recycle fees to pay the industry. Unless the Canadian retailers shape up and give fair value for our buck I can see them loosing a lot of business, especially to people living close to the border. The majority of the Canadian population lives close to the border. The whining is already starting by business about the strong looney. They've had it good for too long. So called Free Enterprize is great. Compete or sink I say. No subsidies from the taxpayers, thank you.

Posted by: pulpworker on September 23 2007 7:30 PM

looking at a new car we want. same car same options canadian mrsp $54K. while I would never pay that for a car and usually don't buy new, i can get it in seattle with warranty and import fees for $36K. while i don't like the idea of my dollars going south 18 grand is a lot of cabbage.