Purrfect Properties Blog

The Canadian Dollar and You.

With the Canadian dollar’s value trending lower, and industry analysts expecting it to continue to trend lower to approximately the .90$ level, you may wonder how this affects you. Depending on your field of employment you may be affected very differently. Since the main economic engine in Alberta and Edmonton in particular, is the the energy sector; Alberta is poised to profit from a lower loonie.

As the price of the canuck buck drops, the cost of our oil and gas is lower to our neighbours to the south, and as such most energy companies from the south have more capital to invest in projects. If the loonie does drop to the expected .90$ that would result in a 10% savings for US companies doing business in our country, versus doing business at par.

If you’re a small business owner you could find profit in the lower dollar as well, with a lower dollar our goods are more attractive to foreigners, so if your business does a lot of export a low loonie is great news for you. The main downfall to the lower loonie comes when you start looking at importing goods, for the business that imports goods you may have to take a closer look at your profit margins and decide on the best course of action.

One other positive spin off from a lower loonie, is in the tourism sector, with the lower dollar some Canadians may chose to keep their vacations confined to our beautiful country, as well as more of our souther neighbours. As a whole Alberta generally benefits from a lower loonie, as has been represented in the past fluctuation of the Canadian dollar. So lower loonie, good or bad? This Realtor sees it as a positive way to keep the Alberta economy moving forward.

And That’s The Cats’ Meow

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