Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬ Parity with the US dollar is not the problem it could have been.
Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬ analysts say that Canadaâ€˜s economy, which emerged from the global slowdown more quickly than any other G7 nation, wonâ€˜t be hurt by the currencyâ€˜s rise to parity with its U.S. counterpart.
Although a stronger currency will squeeze orders for certain exporters, government stimulus measures and steadily rising commodity prices are likely to encourage growth and inflation, increasing pressure on the central bank to become the first of the G7 to raise borrowing costs since the global slump started.
Canadaâ€˜s dollar, also referred to as the loonie because of the aquatic bird on the C$1 coin, recently traded as high as 99.78 cents to the dollar and coincided with crude oil trading near a 17-month high at $86.84 a barrel.
Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬ is thought to expect that Canadaâ€˜s recovery will be the strongest in the G7 at 6.2 percent in the first quarter and 4.5 percent in the next quarter.
Canada has benefited from increasing demand for copper, gold, wheat and oil from both the US and emerging economies including India and China.
Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬ has recommended that holders of US dollars, sterling, euros and yen convert them into commodity currencies such as the Canadian and Australian dollar reasoning that their huge resources would put them in a strong position when the global economic recovery gathered pace as it now appears to be doing.