15 September 2009

Strong loonie poses risk, bank warns

The following is excerpted from the 15 September 2009 edition of “The Star”.

The Bank of Canada is again warning about the Canadian dollar's persistent strength.

Deputy governor John Murray says the Canadian economic recovery may not be smooth, in part because the strong loonie is a barrier to growth.

Murray's caution is contained in notes of a speech delivered to a business conference in Berlin on Tuesday morning.

He says the global recovery is expected to be slow and protracted, citing high household and financial sector debt and trade impediments.

Still, Murray says Canada is enjoying several advantages over many other countries, including a sounder banking sector, low government debt and more balanced household spending….