Date Added: Mar 2010
The Canadian dollar has appreciated significantly against the U.S. dollar and other world currencies during the past few years. This increase has had a major impact on the competitiveness, sales and profits of Canadian exporters. Some companies have coped better than others because they were less exposed to a strong Canadian dollar, or because they adopted strategies that kept them competitive even as the dollar's value moved upward. EDC has prepared this paper to shed some light on the appreciation of Canada's currency. It examines the reasons for the dollar's steady rise in value, the factors that increase a company's risk exposure to a strengthening dollar, and the strategies that businesses can use to mitigate these risks.