Looking for a Canadian dollar forecast? Want to know more about how well the Canadian dollar is forecast for 2009? Read our guide for more information on the forecast of the Canadian dollar …
The Canadian dollar has a floating exchange rate and is freely traded on the world currency markets. It is most often compared in strength against the United States dollar, both countries being in close proximity and sharing many cultural similarities. The Canadian dollar forecast rests on the interplay of the world market for currencies with the world economies playing a significant role in the rise or fall of the Canadian dollar against other major currencies.
The Canadian dollar exchange rate forecast compared to the US dollar remains bullish in 2009 with the rate being 1.126 Canadian dollars to one US dollar in June 2009. This figure is forecast to fall to 1.04 in October 2009 as the Canadian currency gains against the US dollar.
The long range Canadian dollar forecast bodes well for the Canadian economy as the strength of the Canadian dollar would boost the economic gains of the country. A strong dollar would augment trade and up the balance of payments. Economic stability spurs political steadfastness and promotes national growth.
Facts About The Canadian Dollar
The Canadian dollar is also called ‘loonie’ or ‘buck’ by the English speaking Canadian population. The term ‘buck’ hails from the 17th century when coins that were issued by the Hudson’s Bay Company were equal in value to the skin, or pelt, of a male beaver known as a ‘buck’. The dollar coin was issued in place of the Canadian dollar bill in 1987 and it has the image of a loon, a type of diving bird, at the back. Hence the dollar coins are also called ‘loonies’.
The Central Bank of Canada issues the Canadian dollar in several denominations, the largest being $100. Canadian dollars are minted by the Royal Canadian Mint. The Canadian dollar forecast against the US dollar is essential for Canada as more than 80% of its exports are to the United States. Canada imports more than 50% of its economic requirements from its neighbor.
The long range Canadian dollar forecast for the rest of 2009 shows that the Canadian dollar is set to be on par with the US dollar. This bodes well for the country as most of its trade is conducted with its neighboring country.