In this instance, the external value of the Canadian dollar fell by about 12% between mid-1997 and late-1998, reflecting a drop of some 20% over the same period in the average world price (in US dollars) of the key primary commodities we produce.
Because of this movement in our currency, the price of these products in Canadian dollars fell by less than their world price in US dollars, thus reducing the negative impact on our exporters of commodities. Even more important was the incentive that the lower exchange rate provided to Canadian producers and exporters of non-commodity goods and services to expand their sales abroad.