The CEO Poll: The Ascent of the Loonie and Decline of Manufacturing
Canadian Business Online
November 22, 2007
Faced with the rapid ascent of the Canadian dollar, the COMPAS panel of CEOs and business leaders was a range of questions about why it is happening, what should be done, what the loonie will be worth, and what it should be worth.
The panel believes that
- The rise of the loonie is largely beyond Canadian control;
- Ontario Premier Dalton McGuinty was misguided in seeking to pressure the Prime Minister to influence Bank of Canada interest rates;
- A decline of interest rates would nonetheless help moderate the rise of the loonie but the most effective action to help Canadian manufacturers would be a fall in corporate tax rates;
- The ideal exchange rate would involve a fall of the Canadian dollar to 91 cents U.S. but panelists forecast that the actual value will be U.S. $ 1.03 at the end of 2007 and U.S. $ 0.98 in November, 2008.
These are the key findings from the current web-survey of the panel of CEOs and business leaders undertaken for Canadian Business under sponsorship of BDO Dunwoody LLP.
To view the complete poll, please click here
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Previous poll results
