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Factors that could change the value of the Canadian dollar are interest rates, inflation, and demand for financial asset relative to other countries. It basically is how much people want to buy Canadian services and goods. The demand and supply of our market. The Bank of Canada lets the market set its value. A weaker or strong dollar is better depending on the economy. A strong dollar is good if your market relies on imports but bad for foreign visitors. Moreover, a strong dollar is good during inflation because prices would be more expensive if the dollar was strong. A weak dollar is good when you rely on exports and good for foreigners visiting Canada. The floating dollars helps the economy by guiding through a strong or weak economy.

What would your response be to this post? The topic is macroeconomic: factors that could change the value of a Canadian dollar