https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr The importance of exchange rates and why they should be monitored en-us 2022-03-29 07:43:33 UTC 2022-04-04 12:43:42 UTC hello@padlet.com JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118881835 This article focuses on the idea of exchange rates, what are dollar value means, and how the Bank of Canada is involved in this process. The markets set the exchange rate of the loonie, so the Bank of Canada can select its inflation rates. A stronger or weaker dollar can be positive for Canada, depending on our role in the economy. When the price of our raw materials rises, our foreign buyers get them for cheaper and vice-versa. The bank has an intervention policy, which only allows it to get involved in the event of a threat to the Canadian economy.

This article was very informative in explaining the importance of the subject of exchange rates and why they are important concerning the growth of the Canadian economy. I found it beneficial that this article explained how the bANK OF Canada is involved with exchange rates and how the positions of the loonie can affect our economy.]]> 2022-03-29 08:20:41 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118881835 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118895099 This video focuses on the importance of foreign currency and how it affects the Bank of Canada. The Bank of Canada holds several currencies in its deposit JPY, Euro, US Dollar, and GBP. These currencies serve as an insurance fund in case of a crisis concerning the market price of the loonie. Considering that the market price of the loonie changes every day, the government uses foreign currency to buy or sell Canadian dollars to stop it from rising or falling too quickly.

After watching this video, I learned the importance that foreign currencies have within the Canadian market. Acquiring a currency that has a higher value than the Canadian dollar will help offset any drastic changes in the value of the Canadian dollar. Consequently reduces the chances of Canadians seeing an increase in prices within the domestic market.]]> 2022-03-29 08:29:51 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118895099 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118899869 2022-03-29 08:33:05 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118899869 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118901699 (Video is within the article)


This video focuses on the importance of oil concerning the value of the Canadian dollar. Although there are four main factors of influence, crude oil prices maintain the most substantial factor in the market price of the loonie. When the price of Canadian oil increases, the cost to our main consumer (the US) also increases, thereby increasing the market value of the loonie vers the USD. Crude oil is Canada's most important good or service export since it accounts for ten percent of our foreign earnings. Therefore any increase or decrease in the price of crude oil will affect the value of the Canadian dollar and Canada's earnings from exports.

I chose this video because it explains the importance of crude oil in Canada in more depth. Crude oil is Canada's most valuable export, and it helps the loonie maintain a respectable position within the market. Without crude oil, Canada would have less valuable goods for trade, and it would diminish the earnings that we receive from exports.]]> 2022-03-29 08:34:29 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118901699 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118903518 This article describes how large world events (such as wars, financial crises, and pandemics) affected the exchange rate of the Canadian dollar. Canada's entry into the Second World War caused the loonie's value to drop compared to the USD and GBP. Canada could not implement a recovery strategy until the war concluded. The arrival of the Covid-19 pandemic caused traders and investors to acquire USD to reduce their risk of exposure. Subsequently, the value of the loonie continued to drop against the safe-haven currency, the Swiss franc, and the Euro. Nevertheless, the loonie continues to recover from the effects of the pandemic and regain ground on other major global currencies.

I chose this article because it thoroughly explains how the Canadian dollar continues to be resilient despite multiple crises. Even though it is not the most preferred currency, the loonie continues to be a reliable asset during times of financial calamity.]]> 2022-03-29 08:35:43 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118903518 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118906880 This video focuses on how the exchange rates affect Canadian global trade exports, mainly agriculture. The presenter explains that the value of the Canadian dollar affects the prices Canada can charge for crops and livestock. Whenever the market price of the loonie drops vers the US dollar, the value of our exports increases. This increased value to our exports results in more business for Canada since our foreign buyers are getting a better price. Considering that Canada has a long-standing relationship with the US, changes in the market price of the loonie do not significantly affect our trades with the US. The presenter concludes that the market price of the loonie can affect Canadian trade in the short term, but since our exports are very diversified, there are not many changes to our revenue in the long run.

This video taught me the importance of global trade and why it is crucial to establish strong trade relations with other nations. On the condition that there is a significant drop in the loonie, strong trade relationships with other countries will allow us to continue profiting from our exports without seeing a massive reduction in the revenue generated.]]> 2022-03-29 08:37:48 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118906880 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118909802 This article describes how the Canadian dollar and foreign currencies affect agricultural trade. It explains that while a good relationship between the Canadian and US dollar is crucial, Canada should monitor how the Canadian dollar relates to the currency of our other trade partners. Considering that several agricultural markets operate in US dollars, the Canadian dollar must maintain a close equivalence with the US dollar so Canadian farmers will continue to see profits. On the condition that the Canadian dollar is higher than a foreign currency concerning the US dollar, Canada could potentially do business with them since that country may need less produce.

Before reading this article, I did not know that the US dollar played a crucial role in the agricultural market. It did well to clarify how important the relationship between the Canadian and US dollar is while also explaining the importance of monitoring the currency of other countries.]]> 2022-03-29 08:39:40 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2118909802 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2125131093 This video focuses on the four main factors that can affect the price of the Canadian dollar. They include oil prices, yield spreads, labor productivity, and market volatility. When the price of Canadian oil increases, the cost for consumers will also increase. If the interest paid on Canadian bonds exceeds American bonds, the demand for Canadian bonds and bills increases. Whenever Canadian workers produce more the American workers, there is an increase in supply, which Canada cannot offload into their economy. It results in the Canadian dollar becoming weaker, so our goods are more attractive for purchase. Lastly, when there is an increase in global financial risks or growth, consumers flock to a safer currency, usually resulting in the market price of the Canadian dollar dropping. As a result of these four factors, the demand for the Canadian dollar either increases or decreases.

Before watching this video, I assumed that the value of the Canadian dollar depended solely on oil. I now know that multiple factors can influence its value and affect how it compares to another currency. I thought this video could give people a better idea of what factors constitute the value of a currency.]]> 2022-04-01 09:17:40 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2125131093 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2126374799 This padlet focuses on exchange rates and their effects on the Canadian market. Once you have finished navigating this padlet, you will understand how exchange rates work and why consumers should monitor them.]]> 2022-04-02 09:43:15 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2126374799 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2126425077 This image depicts the value of the Canadian dollar versus the US dollar for the past 45 years. I chose this image because it is important to know how the value of our dollar compares to the dollar of our most frequent trade partner. ]]> 2022-04-02 11:37:27 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2126425077 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2126439760 This image depicts our trade partners for crude oil ranked by the countries where we earn the most revenue. This information is important since it demonstrates our dependency on certain nations to purchase our oil. These countries help support the value of the Canadian dollar.]]> 2022-04-02 12:11:24 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2126439760 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2127067923 Question #1
After researching this topic, I was most surprised to learn that four major factors influence the Canadian dollar. I always considered oil prices as the dominant factor in determining value, but now I know that it is just one component.

Question #2
This topic relates to me because if the value of the Canadian dollar drops versus the US dollar, then the prices of American goods will be expensive for me to purchase. 

Question#3
The most important fact that I would pass on to a family member is that exchange rates determine the prices of imported goods which directly translates to the cost of domestic goods.]]> 2022-04-03 10:33:18 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2127067923 JonathanOcquaye https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2127068565 This article describes the effects that exchange rates can have on consumers. It explains that inflation, interest rates, real estate, investments, and the job market are all indirectly impacted by exchange rates. A weak domestic currency can cause consumers to lose out on real-estate purchases to foreign buyers, spur economic growth (increasing employment prospects), and it increases the inflation rate of countries that are big importers. A strong domestic currency may reduce the prices of foreign goods and impact the returns on investments.

I chose this article because I found the information beneficial to my knowledge when pursuing new investments or a real-estate purchase. I found it convenient that this website detailed how exchange rates affect consumers on a domestic scale rather than as a country as a whole.]]> 2022-04-03 10:34:31 UTC https://padlet.com/JonathanOcquaye/ao2y5m30hksdvadr/wish/2127068565