The thumbnail version:
- BDC forecasts a low Canadian dollar for some time yet.
- Good for exports, not great for imports.
The full version:
The Development Bank of Canada’s October newsletter takes a close look at the current state of the Canadian dollar and it’s outlook for the medium term. They caution that while predicting a currency’s value is tricky, there are factors that provide some insight. This is an important topic for the Canadian garment decorating industry because some members export so a lower Canadian dollar can benefit them, but to offset that is the fact that most supplies for the industry (garments, ink, chemicals etc.) come from the U.S. so they will cost more here.
The Canadian dollar has been in a bit of a freefall, currently sitting around 73 cents US. As for where it is heading, the BDC suggests that it could continue to decline in the coming months and continue to hover in the 70 cent to 75 cent range.
So what does this mean for your shop? Well, if the prediction is accurate, imported materials are eventually going to have to cost more. Knowing this, you may want to review your own price lists if your customer base is in Canada.