If you’ve been paying any attention to the doom and gloom story of Canada’s weakening loonie lately, you would have heard that it dipped to a 13-year low yesterday.
Trading at just below 70 cents to the American dollar, it triggered a sense of panic across the country. Some financial analysts called for investors to sell pretty much everything they had in the Canadian market. Individuals, meanwhile, began to worry about their purchasing power abroad, or even their upcoming trips to tropical destinations. But Craig Alexander, Vice President of Economic Analysis at the C.D. Howe Institute is saying everyone needs to relax, because the weak dollar is actually a good thing for Canada.
That’s right, Alexander argues that the low Canadian dollar is acting as a “shock absorber” for volatile commodity prices worldwide, and added that it’s only a matter of time before its value climbs back up again. In other words, this is a market reaction, not a recession. And isn’t that news you could use? Check out the video above for the full story, and breathe a sigh of relief.