Opinion: Roubini says CAD is too high
Nouriel Roubini, the bearish economist known as Dr. Doom, is now moderately enthusiastic about the Canadian economy.
At the same time, Roubini thinks that the value of Canadian dollar is too high, given the need to keep the country’s manufacturing sector intact. In his view, it should be 10% below where it is now.
According to Roubini, a more aggressive monetary response from the bank of Canada is needed: “They could talk down your currency by saying you wouldn’t mind if it is weaker.” The economist underlined that the case for cutting rates in Canada isn’t strong, he noted, but the bank could signal that it is in no rush to raise rates until the US Fed has done so.