Strong Loonie Should Spur Productivity: Bank of Canada
(Reuters – Leila Lemghalef)
The strong Canadian dollar should spur businesses to boost their productivity, the Bank of Canada said on Monday as it warned that pressures on exporters would not necessarily dissipate as the economy recovers.
“The fact that we have recently seen a strong dollar has played an important role in the performance of exports,” Jean Boivin, deputy governor of the central bank, said in French after a speech in Montreal. He spoke of “the importance of becoming more productive … in a world where we are faced with an appreciation of the dollar.” The slow recovery of exports was due partly to the sluggish global economy and partly to the erosion of competitiveness over the last decade, due to the Canadian dollar’s rise and to poor productivity, Boivin said during his speech. Read more here.
Date: March 30, 2011