This week the loonie fell below 69 cents US for the first time in 13 years. There are some benefits to a low dollar, but this has a big negative effect on snowbirds. Canadians taking their usual winter escape will be feeling the pinch. Their discretionary spending, on everything from consumer goods to leisurely activities will likely be diminished. Consumers at home should be prepared to pay more for anything imported. The average Canadian household spent an additional $325 on food in 2015; this is expected to increase another $345 this year because of the low dollar (a total increase of $680 from 2014). (Estimate by the University of Guelph Food Institute). Businesses who rely on supplies from the US are also hard hit.
So where are the benefits to a low dollar? Tourism will thrive as we become more attractive to our southern neighbours. A similar effect happens with industries like film making and exports. The mining sector will also be a benefactor as they operate with the Canadian dollar, but sell with the US dollar.