Who is benefiting from our falling loonie? take a look at these key points from a recent Wall Street Journal article by Don Curran.
In addition to the US Dollar the Canadian dollar’s has also declined against the currencies of its trading partners; 8% against the Mexican peso, 16% against the euro, and 14.6% against the British pound.
In the manufacturing sector, wage differences work to Canada’s disadvantage, particularly relative to emerging markets.
Commodities are typically priced in U.S. dollars on international markets, so the cheaper Canadian dollar does not generally open up opportunities for lower pricing.
So what does this mean for cross-border shoppers? YES you will be paying more in Canadian Dollars for your US Dollar.
Prices in the US have not increased. Prices back home in Canadian Dollars have and will continue to increase as the loonie fluctuates. Don’t expect to see Canadian prices to go down if loonie rebounds at all. You will still see significant savings in virtually all items across the border. You will just have to do a little more research and shop smarter.