Canadian Dollar in Currency War

axiafx vs banks

Canada is not a sitting duck when it comes to the so-called currency war, the country’s central banker said Wednesday.

In spite of the recent G20 pledge to allow currencies to float freely, there is no shortage of countries pointing fingers accusing others of intentionally pushing down local currencies in order to stay competitive.

The Americans have accused the Chinese of deliberately keeping the yuan undervalued, while the Brazilians say another round of quantitative easing by the U.S. will have a similar affect.

In testimony before a senate committee on banking, trade and commerce, Bank of Canada governor Mark Carney said Canada is actively engaged and working toward a multifaceted strategy to address the issue.

“What we are doing is hardly naive,” he said.

But the Bank of Canada only contemplates intervention in extreme cases of currency movements that threaten sustainable long-term growth, Carney said.

“That’s a judgment we will make if necessary,” he said, adding it’s Canada preference to work with other economies for a solution before resorting to formal interventions.

In recent weeks, the Canadian dollar has been lifted by the sagging U.S. greenback. A high loonie can have an adverse impact on exports since it makes Canadian products more expensive for potential buyers.

Company Details

Canadian Dollar in Currency War

Get a quick quote

Open Account with Moneycorp

Moneycorp are located at:
The Zig Zag Building, 70 Victoria Street, Greater London, SW1E 6SQ, United Kingdom

Get a Quick Quote

Newsletter Signup to CMT

Sign up to our foreign exchange newsletter to receive news updates directly by email

Compare Money Transfer will not Share your details!

Bank Exchange Rates Comparison

High St Bank Exchange Rate

All Rights Reserved: Copyright 2006 - 2018 Compare Money Transfer Limited offering FCA Regulated Suppliers - 34 New House, 67-68 Hatton Garden, London, EC1N 8JY. +44 (0) 843 357 4882