Business Blog

What Canadians are saying will happen to Whatcom County as the loonie drops

The British Columbia newspaper The Province has an article about the impact the lower Canadian dollar will have on Whatcom County. Here’s the (link).

To sum up the article, the expectation up there is that fewer Canadians will be shopping in Whatcom County and more Americans will start heading north. Looking at other today’s Canadian articles, another major trend is that airline travel will also slowdown. Here’s an example from Global News (link).

It will be interesting to see what’s next for the loonie. I saw a few Canadian articles citing analysts who expect it to fall further in the coming weeks, possibly to 76 cent compared to the U.S. dollar (the loonie closed on Jan. 21 at 81 cents). The key will be oil prices... How long will those prices stay this low? As Chris Lawless noted (link), the Canadian dollar may rebound if it gets back to $60.

“It’s hard to read what all the players are thinking,” said Jim Pettinger, president of International Market Access in Ferndale.

OPEC isn’t showing signs that it will pull back on production, so it could be a weak loonie for a while. Meanwhile, the average price for a gallon of gas in Bellingham is $2.19, which is $1.23 less than a year ago. That’s a significant savings for Whatcom County residents.