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The Effects of The Climbing Loonie
By Cassandra_BHM | March 15, 2010
For the past year the Canadian dollar has been slowly climbing as economists predicted it would. The addition of 60,200 Canadian jobs in the latest strong jobs report has been the cause for the recent surge resulting in the loonie closing at 98.24 over the March 14 weekend. Many of its effects sit in the shadows. On the positive side, now is a great time to take that US vacation or buy that high-end item you’ve had your eye on. It is also a great time to look at getting a loan.
The impact that the 98-cent loonie will have on us as consumers is obvious in some aspects. With 85% of Canadians living within 150 km of the American border, cross border shopping becomes very economical. Purchasing everything from clothes to groceries will save a lot of money. Whether you’re a student or an avid reader, buying new books for $17.95 that would otherwise cost $22 makes the trip practical.
US destined travel is also something many people will be considering now that the loonie is almost at par with its greenback neighbour. An otherwise unobtainable week in sunny Florida or a family weekend in California spent wandering around Disneyland is a sudden possibility.
As good as this loonie news is for most Canadians, this swift surge is not good news for our largest export buyer, the US. The cost of doing business with us is not as feasible as they would like and inevitably, this could reintroduce strain to our ever-recovering economy.
For this reason, the banks may not be thinking about interest rate increases, so if you are in need of some extra money or think now is the best time to take that vacation, a loan may be an idea worth investigating. Many great travel deals can be found by doing a little on-line homework. If you find a deal now that is too good to pass up, but now is not an ideal time financially, consider getting a small loan.
There are many financial institutions that are willing to help even if your credit is less than stellar. If you’re thinking of purchasing a large ticket item, a small loan could offer a solution as well as improve your credit rating. It’s not necessary to take out a loan for the full amount of your trip or large-ticket item. If you take only what you need, your monthly payments will be much lower and allow for more financial freedom while improving your credit rating for the next loan.
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