Nicknamed as loonie the Canadian Dollar is one of the strongest currencies of the world. It is the 4th largest currency which is used by the countries to keep their foreign exchange reserves. The credit goes to the Canadian economy which is regarded as one of the strongest ones. The ISO standard has been governing the Canadian Dollar standards since the day of its inception. ISO 4217 is the code which is related to the Canadian Dollar and the exponent which is given by the ISO is 2. $100 is the highest denomination which is available in the country though it is not used frequently. The Bank of Canada is the sole issuing authority which works directly under the command and control of the federal government. The inflation of the Canadian Dollar is marked at 1.06% the coins are managed by Royal Canadian Mint. Over time the Canadian Dollar has undergone various changes which have helped to formulate the world markets.
The trade issues of the Canadian government have put the Canadian Dollar in a very volatile position. All eyes are on the Central Bank of Canada which might fail to get the loonie back on track if the interest rates are not raised as speculated. Though currently, the US is the only country that could change the short-term fate of the Canadian Dollar nothing could be said for sure. The 70% of the trade of the country is with the US. In case the NAFTA fails then it could be a huge blow to the Canadian Dollar. The worse part of the problem is that the Canadian Dollar might fall against the Mexican Peso as well. The talks for the NAFTA are underway and common Canadian is hoping for the best to happen.
The Bank of Canada is of the view that the Canadian Dollar is undervalued and it is constantly visiting the government officials to make sure that the currency’s value is retained. The Bank of Nova Scotia is also holding meetings with the Bank of Canada to make sure that the Canadian Dollar valued is raised to the maximum owing to the current conditions of the world economy. The Canadian Dollar bonds and the related values will be increased as well. The bank of Canada will make sure that a detailed policy is rolled out for the financial institutions across the country. Though it is highly unlikely for the loonie to strengthen still the measures will be taken.
The Reuters conducted a poll which shows that the Canadian Dollar will strengthen with the passage of time. The US dollar casts very vicious shadows over the Canadian Dollar when it comes to the NAFTA deal. It is very important for the Canadians to note that according to the World Economic Forum the Canadian Dollar will rise over the period of one year. It will get stabilized over the period of time and will see a further hike in 2019 – 20.