The economy, not the Bank of Canada, is responsible for the weakness of the Canadian dollar. That was the message from BoC governor Stephen Poloz today. Speaking at the G20 conference in Turkey he said that he is not “talking down the dollar” but that confidence, especially in light of oil prices, is lower. There has been a 2.9 per cent drop in the value of the loonie against the greenback since the central bank cut interest rates and an 18 per cent fall since Poloz became governor. He said that while negative effects of the lower dollar were immediate it takes a little longer for the positives to be felt.
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