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Thursday, May 8, 2014
Its springtime: everything is coming up roses! except for Canada's current account
Current account is the differenct between what you buy and what you sell as a nation. Canada is importing goods from other countries. This means that Canada has to go on the open market and buy foreign currency to buy foreign goods. That glut of Canadian dollars forces the value of the Canadian dollar down (its supply and demand in the marketplace. My read of this is that we can expect the value of the Canadian dollar to drop further in the coming days, weeks and months.
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