Our website is made possible by displaying online advertisements to our visitors.

Please consider supporting us by disabling your ad blocker.
Sign in to follow this  
Followers 0
Cinnamon

Canadians skyrocketing grocery bills due to drop in Looney

2 posts in this topic

It is often said that a free-floating currency acts as a shock absorber.

But when Canadians go shopping for groceries these days, they're getting nothing but the shock—sticker shock, that is.

On Tuesday, the Canadian dollar, commonly known as the loonie, broke below 70 U.S. cents for the first time since May 1, 2003.

 

For America's northern neighbor, which imports about 80 percent of the fresh fruits and vegetables its citizens consume, this entails a sharp rise in prices for these goods. With lower-income households tending to spend a larger portion of income on food, this side effect of a soft currency brings them the most acute stress.

<snip>

http://www.bloomberg.com/news/articles/2016-01-13/canadians-are-going-loonie-on-social-media-about-skyrocketing-grocery-bills

Definitely a shtf scenario for people who are already borderline poor.  This is what I'm afraid we are going to see here one day. 

Share this post


Link to post
Share on other sites

Macquarie forecast says Canadian dollar will drop to 59 US cents in 2016

http://www.ibtimes.com.au/macquarie-forecast-says-canadian-dollar-will-drop-59-us-cents-2016-1500788

Investment banking group Macquarie forecast has suggested that Canadian dollar is expected to slip to 59 US cents in 2016. The speculation came a day after the loonie went down below the 70 US cent for the first time since 2003.

David Doyle, a top-ranked forecaster at the company, predicted that the loonie would lose another 10 US cents, reaching a limit as low as 59 US cents by the end of 2016. This is an observation that has been indicated by weakening energy sector productivity and the cut in the interest rates for the third time as supported by the Bank of Canada.

On Tuesday, Doyle declared the lowering Canadian dollar value forecast to 59 US cents, which was even lower than the all-time low value for the loonie in 2002, amounting to 61.79 US cents. The expert has often been right on the money. In February 2014, when the Canadian dollar was valued at 80 US cents, Doyle predicted that the dollar will slip to 69 US cents over 12 months, which actually happened.

<snip>

Share this post


Link to post
Share on other sites
Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   You have pasted content with formatting.   Restore formatting

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

Sign in to follow this  
Followers 0

Our website is made possible by displaying online advertisements to our visitors.

Please consider supporting us by disabling your ad blocker.