In Canada, we have a coin that is worth $1.00. We have nicknamed it the "Loonie" because there is a Common Loon depicted on the coin. Why? Well that is a story for another day, but today the Loonie soared to a record high. Early this morning the Loonie soared two cents US to a high of $1.07.18. The reason given on the news tonight was a rise in oil prices and strong employment reports.
The soaring Loonie is not all good news for Canada. Many retailers have cut the prices of their products to bring us more inline with the US dollar because of public outcry. It seems Canadians are tired of paying so much more than the US price when our dollar is doing so good. In September I went to buy a book. The price was US $19.95 and $29.95 Canadian. I left the book in the store.
Though prices are being lowered on a daily basis, the high Loonie can cause hardships. Canadian manufacturers say that US companies are no longer importing their products because of the high Canadian dollar. US visitors to Canada are decreasing and people who do visit are not spending as freely as they were when the Loonie was worth less than the US dollar.
Though Loons don't normally fly, the Loonie has soared 25 % in 2007, when compared to the US dollar. It's the world's best performing currency this year. $1.07 is a record for the Canadian dollar and it has never been so high. I remember when I was growing up that the Canadian dollar (no, it wasn't the loonie then, it was a Canadian dollar bill) was worth $1.03 US.
What does this all mean for Canada and Canadians? Well, we'll just have to wait and see but I'm cautious. I don't see all this being well and good for our nation and repercussions may occur. Time will tell.