This week marks the largest drop for the Canadian dollar in over three years and experts are projecting further declines over the next several months.
Some say Canada will see its dollar go as low as 90 cents US within the year and argue this may be the best thing for the Canadian economy. The lower loonie will encourage Canadian consumers to spend money within their own country instead of paying high exchange rates to shop across the border.
CBC news reported that the benefits of this drop will also extend to Canadian exporters. The lower loonie will make their goods and services more competitive to outside buyers.
The dollar closed on Tuesday at 92.83 cents US and dropped even further yesterday at 92.37 cents US. This should not come as complete shock considering the Canadian and US dollar have not been on par since February of 2013.
What does the future hold?
CBC reports that economists are projecting the loonie to drop further until it stabilizes around 92 cents within the next six to eight months. Others believe it could drop as low as 90 cents within the coming year.
To stay up to date on the state of Canadian currency, download the mobile currency exchange app by XE.