The Loonie Takes Off
At 10:59 a.m. EST on September 20, 2007, the value of the Canadian loonie was higher than the U.S. dollar for the first time since November 1976.
The soaring value of the Canadian dollar over the past few weeks has riveted the attention of economists all over the world on to the Canadian economy. The reverberations of the new parity status has resulted in a free-for-all of cross-border shopping and an increase in international investor enthusiasm for Canadian stocks. Experts predict a number of such positive effects but also warn of important negative consequences, such as those that will inevitably be experienced by Canadian exporters.