The Upside of a Down Canadian Dollar

The Upside of a Down Canadian Dollar The falling price of oil has dragged the Canadian dollar down with it, which brings mixed blessings for restaurateurs across the country. The oil-rich provinces of Alberta, Saskatchewan and Newfoundland and Labrador will face below-average economic growth and job creation in 2016. However, the lower loonie will draw more international tourists and boost exports – which is good for business in many parts of the country. What’s pushing the loonie down? Due to lower oil prices, the Canadian dollar – which was at par with the U.S. dollar in 2012 – now sits at US$0.78. A resurgent American economy also adds downward pressure on the dollar. In the second half of 2016, the United States Federal Reserve will likely raise its key interest rate, which will further strengthen the American dollar at the expense of our loonie. Our economy and industry will see…