3 years, 4 months ago
Why has the Canadian dollar fallen against the USD?
A few months ago, in the fall of 2008, the Canadian and US dollars were at par. Now the Canadian dollar is down to $0.82 USD.
Why?
Why?
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M$1 Answer
The Dollar was only strong for only a short period of time when you look at our recent history, in 2007/2008 it was at a 30 year high.
http://www.flickr.com/photos/33749589@N07/3167547283/
Several things caused the dollar to fall and one could argue the "global economic crisis" is part to blame, Canada has a commodity based economy and if nobody has money to buy our resources we get lose out, also the price of Oil has fallen dramatically.
http://www.flickr.com/photos/33749589@N07/3167563029/
http://www.flickr.com/photos/33749589@N07/3167547283/
Several things caused the dollar to fall and one could argue the "global economic crisis" is part to blame, Canada has a commodity based economy and if nobody has money to buy our resources we get lose out, also the price of Oil has fallen dramatically.
http://www.flickr.com/photos/33749589@N07/3167563029/
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
One thing to note is that when the US Economy does bad, everyone else's economy tends to do worse.
This is due to the US Dollar being used as the reserve currency for most the rest of the world. http://en.wikipedia.org/wiki/Reserve_currency
(Having Gold, Silver, or some other precious metal, as the Reserve [rather than US Dollars] would be much much IMO. But that's getting off topic.)
And while that note doesn't fully explain why the Canadian Dollar has fallen relative to the US Dollar, it is something to keep in mind.
If you really want to see if the Canadian Dollar has lost value or not, check it against the price of Gold.
The Canadian Dollar may have not lost value... it might have stayed about the same... and the US Dollar may have gained value... which, by taking a quick look at the "USD vs Gold" graph and the "CAD vs Gold" graph, seems like the case.
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USD vs Gold graph: http://www.lewrockwell.com/blumert/burt-gold.html
CAD vs Gold graph: http://freemarkets.ca/gold