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Excuse me! The reason why oil companies have become far less profitable over the last 5 years, even if that's not exactly correct, has everything to do with supply and demand.Have alternative sources of energy had an influence on demand?
A high Canadian dollar relative to our number one customer isn't an economic positive.
It's good for importers and bad for exporters. It's basically a wash.What it actually means is how well our economy is doing relative to the US.
No, it actually doesn’t mean that at all.
Actually it does.
No - foreign exchange rates are complex, and are very loosely (at best) tied to economic potential. In times of global upheaval, like now, people rush to the US dollar as it is the global safe haven currency. The Canadian economy has been outpacing most of the G7 pre COVID and is expected to continue that trend, yet that isn't reflected in the value of the EURO vs the CAD.
The CAD is up against the USD, EURO and Pound today. When oil prices were above $100, our dollar was above par with the US. It is not the only reason but it has very much to do with the state of our economy vs the US.
Really wilbur? Can you provide the date on which we saw par for the CAD? I have a chart that records crude along with world exchange rates. I'm not disputing what you've said, just making an attempt to include you in this conversation.Here's mine for your convenience: http://fx.sauder.ubc.ca/data.html
No, the dollar increases, not so much with the economy on a grand scale, but on the price of oil. We have a petro-currency. I think you’re changing the story to fit your preconceived narrative. Dollar high = economy good = Con gov’t. Dollar low = economy bad = Trudeau. https://www.investopedia.com/articles/investing/102015/currencies-most-affected-falling-oil-prices.asp
Correct. Oil is Canada's biggest export, 22% of total exports worth almost 100 billion in 2019. When the price goes up, it is good for Canada and the dollar goes up.
Price of oil can be low, our economy can be doing well and the dollar can still be low. So, the value of our currency is not based on a booming economy, as you claimed it was.... it’s based on the price of oil.
22% of our exports worth almost 100 billion is good for our economy. I don't get this attitude that we will all be better off if we are poorer, which is exactly what we are if our money is worth less.