The first initiative in this direction was the agreement in December 2007 between the ECB and the US Federal Reserve to grant loans in US dollars to euro area counterparties in connection with the Fed’s Term Auction Facility (TAF). The US dollar-denominated loans to euro area banks were financed through a currency arrangement (swap line) between the two central banks.
This will inevitably lead to more growth in Canadian exports and, with the reduction in uncertainty that comes with that, more investment in Canada’s economic capacity, including creating more companies – and the much-anticipated rotation in growth. This won’t necessarily happen in a linear fashion.