Inflation targeting can only work with a flexible exchange rate, which gives the Bank of Canada room to set monetary policy independently of other countries. We don’t target the exchange rate or even publish a forecast. With a floating exchange rate, the external value of the Canadian dollar can change for a variety of reasons, and that affects inflation in Canada through two channels.
What is significant to avoid systemic risk arising from chronic stress is not regional financial institutions' "current" solvency, but rather their "future" solvency.