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View Full Version : Russia Diversifies Into Candaian Dollars



silversurfer1
21st January 2010, 06:29
Yet another nail in the Dollar's coffin...

http://www.ft.com/cms/s/0/22f1bd26-05db-11df-8c97-00144feabdc0.html

DaleFromCalgary
21st January 2010, 12:33
The US$ will be a long time dying. The Bank of Canada is trying to drive down the value of the loonie but to no avail. The problem is that Ontario and Quebec manufacturers have been used to relying on a 70-cent loonie as a crutch in lieu of investing in modern manufacturing methods and becoming more efficient. Since the majority of votes are in eastern Canada, the federal parties have to go along with the BoC.

Mighty Moose
21st January 2010, 13:17
The US$ will be a long time dying. The Bank of Canada is trying to drive down the value of the loonie but to no avail. The problem is that Ontario and Quebec manufacturers have been used to relying on a 70-cent loonie as a crutch in lieu of investing in modern manufacturing methods and becoming more efficient. Since the majority of votes are in eastern Canada, the federal parties have to go along with the BoC.

Dale, I'm aware that they do this, but how? Do they surrepticiously go into the forex markets & buy a lot of USD's with CND's or do they negotiate back-room deals with other central banks or a bit of both? Are they allowed to do whatever it is they do?

TheLoneRanger
21st January 2010, 13:26
Doesn't this mean that Canadians are now stockpiling Rubles in their foreign reserves? How do Canadians feel about that?

UmassSteve
21st January 2010, 14:09
Doesn't this mean that Canadians are now stockpiling Rubles in their foreign reserves? How do Canadians feel about that?

Couldn't it also mean that Russia is dumping their USD reserves from selling oil by buying canadian dollars with them? Although I'm not sure if they have such reserves and how large they are. Or if that is what is going on.

Just thinking aloud.

TheLoneRanger
21st January 2010, 14:39
Couldn't it also mean that Russia is dumping their USD reserves from selling oil by buying canadian dollars with them? Although I'm not sure if they have such reserves and how large they are. Or if that is what is going on.

Just thinking aloud.

yeah thats a possibility I suppose sounds loony to me.

Mighty Moose
22nd January 2010, 05:28
Doesn't this mean that Canadians are now stockpiling Rubles in their foreign reserves? How do Canadians feel about that?

I think it would be more along the lines of the Central Bank of Canada swapping CND's for the USD's that the Russians are trying to unload.

I wish they would pay us gold for our fiat debt paper. Our gold reserves have become pathetic, but at least we don't pretend! The mint just loses track of it (gold), sometimes. :rolleyes:

DaleFromCalgary
22nd January 2010, 10:14
The tactic that the Bank of Canada has been using is to issue bonds denominated in US$ or euros. I don't like this at all but since I never worked for Goldman Sachs my opinion doesn't matter. (The BoC governor is a GS man.)