The US–China trade issue represents a two-sided risk for Canadian monetary policy. The United States and China could find a path to ease or resolve this trade conflict, which would be positive for global trade and investment, and for Canada. Or, the conflict could worsen, jeopardizing key global value chains.
In case of compliance with the convergence criteria, more practical arrangements will then be set in motion, relating, for example, to the integration of the national central banks into the Eurosystem and to the cash-changeover procedures.