$1.00 CDN =$1.00 US!!!
By 250 News
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."
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