benefits of a strong cad$?

B

battle river

having experienced the pleasure of now losing $10 for every $100 usd i make,makes me wonder what the benefits of having a strong currency?
negative:
manufacturing will be hurting,no consumer benefit from lower retail prices.domestic tourism will be hurting
positive:
i guess importers will do better cause they dont pass on the savings to consumers.lower inflation(in theory)

don't see much benefit overall.
any thoughts? thanks!
:)
 
I don't think there is any benefits in the short to midterm. No one will buy anything made in Canada. CAD is out of control and not even the Bank of Canada is ppwerful enough to stop it. They would have to cut rates on half and flood the markets with loonies.
 
Quote from battle river:

having experienced the pleasure of now losing $10 for every $100 usd i make,makes me wonder what the benefits of having a strong currency?
negative:
manufacturing will be hurting,no consumer benefit from lower retail prices.domestic tourism will be hurting
positive:
i guess importers will do better cause they dont pass on the savings to consumers.lower inflation(in theory)

don't see much benefit overall.
any thoughts? thanks!
:)
More...

strong currency means healthy economy and sound monetary policy, super low input costs, cheap new technologies,
and consumer benefits from low prices, it just doesn't happen overnight

there are no disadvantages from strong currencies

why do we need poor american tourists? There are rich countries with strong currencies and toruistrs from those countires will visit Canada

I think we might even introduce visas for americans as Canadian dollars gets stronger at some point we will get a flood of illegal immigrants with US passports
 
strength of currency is a proxy for your standard of living

strong currency == means your standard of living is going UP
 
Quote from The Kin2:

I don't think there is any benefits in the short to midterm. No one will buy anything made in Canada. CAD is out of control and not even the Bank of Canada is ppwerful enough to stop it. They would have to cut rates on half and flood the markets with loonies.
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don't be a fool. US will beg for what is made in Canada and pay any price for it - because Canada makes oil, natural gas, grains etc.

If US doesn't need it. We don't mind. China will buy everything
 
Quote from kashirin:

strong currency means healthy economy and sound monetary policy, super low input costs, cheap new technologies,
and consumer benefits from low prices, it just doesn't happen overnight

there are no disadvantages from strong currencies

why do we need poor american tourists? There are rich countries with strong currencies and toruistrs from those countires will visit Canada

I think we might even introduce visas for americans as Canadian dollars gets stronger at some point we will get a flood of illegal immigrants with US passports
More...
umm,i think we need us tourists since they can drive here in massive #'s while the others have to fly.flood of illegal US citizens? all they have to do is ask to get in
 
lower inflation(in theory)
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This effect is very real. Think about commodity prices as well. The rise in oil prices will have a more moderate inflationary effect when the canadian dollar appreciates. Combined with cheaper imports this will have a significant moderating effect on inflation.

The Central bank in turn can opt for a less strict monetary policy, as inflation is partially countered by the strong domestic currency.

Think about hedging against Canadian dollar appreciation if your income depends on it.
 
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