Because other major currencies have also fallen against the US dollar during this period, the Canadian dollar has declined much less against these currencies. Nonetheless, given the importance of our trade with the United States, the effective value of the Canadian dollar, measured on a trade-weighted basis against all the major G-10 currencies, has declined significantly in recent months.
At this juncture, when price developments are mainly being affected by transitory factors, it is crucial that the current upward movement of prices does not become a more lasting one, and it is therefore important that wage moderation continue.