At the time of this writing, the Canadian dollar is not only falling flat, but it seems to be drifting toward lower levels. If you were to do an exchange of currency between the United States and Canada, and you are coming from Canada into the US, you would end up with only 75% of your money once the exchange was completed. This is because of weak economic conditions that exist. The cost of oil is down and relations between the US and Canada have been compromised. There are other reasons that the Canadian dollar Outlook is looking somewhat bleak, but it is not the end of the road for those that will invest in this type of currency.
How Does The Canadian Dollar Outlook Look Right Now?
From the perspective of Canadians, it’s not looking that bad at all. In fact, it would be difficult for the average person to point out specific reasons that their economy is not as robust as it was 10 years ago. For the most part, everyone seems to be doing very well. Employment is high, and people are still very happy with the jobs they are doing. However, there is an economic downturn that is occurring which is directly related to currency.
The Current Economic Downturn
Over the last few years, the economy of Canada has started to diminish. As mentioned before, it’s trade alliance with the United States has a lot to do with this impact. It might be advantageous for the Canadian government to find other trading partners. An infusion into the economy of the sale of other products might be able to fix the problem. This downturn in the economy is not solely based upon trade, but is also the results of federal fund rates, economic projections, and the public perception of how the stock market is going to fair. All of this put together creates the perfect storm where the Canadian dollars value is continually diminishing, and changes will need to be made to take this in the other direction.
How Can You Improve The Canadian Economy?
There are several ways that the Canadian government can begin to repair the damage caused by this rift between the US and Canada. That would include making Canada into a more appealing business investment, prompting other countries to invest in it for economic reasons. Becoming more globally competitive will also help. This country is one of the top agri-food leaders in the world. The key is to start finding trading partners that not only want to invest in this country, but also begin to import more of their goods.
The Canadian economy might be having some slight problems right now, but they can be resolved by making simple changes. Instead of relying too heavily on the US, they could expand their trading partner list with others that will help infuse the economy with more revenue. By increasing exports and trade, they will begin to see a substantial change and part of that should be focusing on green resources. However they do this, until these changes are implemented, the Canadian dollar Outlook will continue to look less than favorable.