US president Donald Trump looks set to introduce a new tax of 10% on Canadian goods coming into the US which has caused problems for exporters north of the border as well as the Canadian Dollar vs Sterling.
Many businesses are even now considering moving their premises into the US in order to remove themselves from this potential problem.
The central Bank of Canada have spoken out on the issue and have said it will cause a problem if Canadian companies look to move production into the US as it means less revenue for Canada.
As such a large exporter to the US with approximately 75% of its exports this is clearly a big concern for the government and the central bank and if something changes this could cause a real issue for the Canadian economy and also the Canadian Dollar.
An estimate by the National Bank Financial has suggested that the proposed tax could even cut exports by as much as 9%.
However, we could see some positive news for large oil companies based in Canada as Trump is looking to sign an executive order to complete the Keystone pipeline which carries oil between the US and Canada.
There is a lot of opposition to the project but this could help oil companies north of the border to increase their production.
The Pound has seen some real gains vs the Canadian Dollar since Trump’s inauguration and I think we’ll see further problems ahead for the Canadian Dollar so if you’re looking to sell Canadian Dollars to buy Sterling it may be worth looking at moving sooner rather than later.
If you would like further information or for a free quote when either buying or selling Canadian Dollars then contact me directly for a free quote and I look forward to hearing from you. Having worked in the foreign exchange markets since 2003 I am able to offer you bank beating exchange rates.
Tom Holian email@example.com