Support for LAist comes from
We Explain L.A.
Stay Connected

Share This


The Almighty Loonie?

Stories like these are only possible with your help!
You have the power to keep local news strong for the coming months. Your financial support today keeps our reporters ready to meet the needs of our city. Thank you for investing in your community.

This week marked one of the proudest moments in recent Canadian history. Well, not really...but pretty darn close...

On Monday the Canadian dollar traded at $1.0091! That translates to about 99.12 Canadian cents to the American dollar, the highest rate the currency had traded at in over 30 years! The “loon”has been steadily increasing over the last month up from its typical rate of around $0.80-$0.85 Canadian cents to one American dollar. The lowest exchange rate for the loon was in 2002 when it sunk to $0.62 Canadian cents to one $1 American.

The reason for the loonie's increased strength? Analysts initially said the U.S. credit crisis had a lot to do with it as foreign investors, wary of the delinquent U.S. market were finding Canadian investments more attractive. Recently however, as lenders like Citigroup are projecting returning to a “normal earnings environment” and former Federal Reserve Chairman Alan Greenspan says the credit slump may be almost over, the Canadian dollar has continued to rise, perhaps as a sign that an end to the U.S. credit crisis may be good for Canadian commodities, which account for about half of the country's exports. Still others are saying that the sudden economic growth is due to advancement occurring in the Chinese economy.

Support for LAist comes from

All this has been great from the Alberta oil industry but apparently bad for “B.C Bud” marijuana exports.

So watch out for increased Canuck traffic through L.A. this fall as more and more Canadian Snowbirdstake advantage of the improved exchange rate and head south for the winter...