The job of regulators and supervisors has never been an easy one. It is often misunderstood. It’s a highly complex one full of invisible hurdles. The hurdles stemming from inside the country are relatively easy to overcome. Those stemming from abroad are not that easily overcome. Regulators and supervisors across the world have however been doing an excellent job.
Exchange rate movements tell us something about economic developments that may be having a direct impact on Canadian aggregate demand. And the movements themselves have their own impact on aggregate demand, by changing relative prices for Canadian goods and services and by shifting demand between domestic- and foreign-produced products.