In a surprise move, the Bank of Canada cut its benchmark overnight interest rate to 0.75 percent, resulting in significant weakening of the Canadian dollar.
As of Wednesday morning, Jan. 21, the Canadian dollar was less than 81 cents compared to the U.S. dollar. Here’s a (link) to a column in The Globe and Mail providing a good summary of what’s happening.
With the loonie getting this low, cross-border shopping in Whatcom County is expected to be impacted. A variety of factors, such as lower prices on gasoline and dairy products, could continue to make Whatcom County an attractive place for British Columbians to shop, but the current Canadian dollar rate is a disincentive to shop in the U.S.
I’ll be writing a story for Thursday’s paper about the impact locally. If you’d like to weigh in, comment below or shoot me an email at firstname.lastname@example.org. Thanks!