Carney and Currency
Wednesday, June 24, 2026 at 7:24AM 
The U.S. dollar reached $1.34 CAD in January and has since risen to $1.41, a 5.25% increase in under six months. What makes this unusual is that the U.S. dollar has weakened against most major global currencies over the same period. Under normal circumstances, Canada’s economic potential and resource base should support a stronger currency. So what is missing?
A nation’s currency functions much like a common share: when a country is well‑managed and its resources are in demand, its currency tends to strengthen. It is almost impossible to mess up this relationship unless you are completely incompetent like our Ivy League university educated and fear mongering Climate Change pushing prime minister.
Canada’s economic performance illustrates this. The Canadian dollar was near parity with the U.S. dollar just over a decade ago, during a period of strong economic growth created by Conservative policies. Canada also weathered the Great Recession better than most advanced economies thanks to Harper's policies. However, beginning in late 2013, as political momentum shifted, the Canadian dollar entered what has now become a fourteen‑year decline. The depreciation has contributed to the rising cost of living, as imports become more expensive when the currency weakens.
There was a brief increase in confidence when Mark Carney came to the rescue as PM, but recent market behaviour confirms that he certainly is useless when it comes to governing. If current trends continue, the Canadian dollar could fall to $0.65 USD within a year. Such a decline would significantly increase the cost of goods and services for Canadians.
The central question is how severe conditions must become before Canadians demand a competent government. So far, it appears Canadians are still suffering a severe case of Trump Derangement Syndrome and are fine destroying our country with their stubbornness. A weak currency is not inevitable for a country with Canada’s assets, but restoring confidence requires stable governance, credible economic management, and clear long‑term policies which the Liberals are unable to provide.
The fact that the Liberals are destroying our currency is the reason why I am hesitant to put more money into the USD. This is temporary, hopefully. As soon as the Liberals are voted out, the trillions of dollars in foreign investment that left Canada because of them will quickly return and our currency will recover faster than it fell.
USD / GBP 0.7601 (▲ 0.33%) United States Dollar / Pound sterling | Google Finance
