Exports and Forex in North America: Cheaper Loonie Equal More Exports to US?

by royalarse13


Despite strong loonie growth in exports to the USA exceeded that of total exports.

Admittedly this is an incomplete analysis, but here is a look at how exchange rates impacted exports leaving Canada: a) to the USA, b) total exports. In theory, a weak loonie would incentivize US businesses to buy good and services from Canada. However, when the loonie is roaring 2001-2007 growth in exports to the US rises faster than total exports!