The Canadian dollar has appreciated significantly over the past two years against the American dollar. The Globe and Mail newspaper has a story on the effect of the soaring dollar on a Toronto music store and a Bank of Canada survey on business outlook.
I find it a bit difficult to feel sorry for the music store. While the rising dollar is currently playing havoc on inventory (priced in USD), sometime in the past a sliding dollar probably yielded nice profits. Hopefully, lower product prices will attract more Canadian sales in the future and they will do just fine.
The business outlook survey reveals that more than three quarters of the businesses adversely affected by the dollar are involved in resources and manufacturing. It is really surprising that as much of 40% of those businesses plan to do nothing about it!
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