Page 12 - Flathead Beacon // 2.12.14

12 | FEBRUARY 12, 2014 NEWS FLATHEADBEACON.COM

Canadian Dollar Dips as U.S.

Facts

FIGURES
Economy Rebounds

Numbers in the news

$5 billion
Lowest value in nearly
10 percent in value.
ive years prompts The latest estimates are that the loo-
Amount BNSF says it nie will hold at roughly 91 to 93 cents U.S.
will invest in its railroad concerns over visitor in 2014, Townley said.
“That’s still very, very strong and that
this year, including spending in border will still bring the tourism. That will still
$900 million to expand bring the Canadians,” she said.
communities
capacity in the Northern For years, the U.S. dollar towered over
Plains where crude oil Canada and Americans enjoyed the high
shipments are surging.
By DILLON TABISH of the Beacon
conversion rates that made visiting the
country extremely afordable and attrac-
Two weeks ago, the sagging Canadian tive. But during the recession years, the
dollar reached its lowest value in nearly loonie strengthened considerably.
-35 degrees
ive years. The loonie slid to 89.35 cents In 2012, when the loonie traded al-
U.S. in the inal week of January, 10 cents most on par with the U.S. dollar, roughly

Temperature with lower than nine months ago and the irst 1.5 million Canadians crossed into Mon-
windchill (if not colder) time it dropped below 90 cents since mid- tana through one of the 13 border stations,
2009.
“We were spoiled when (the loonie) according to the latest igures from the
recorded at the summit The declining value of Canada’s cur- was at 98 cents. But even down to 92 cents U.S. Department of Transportation. That
of Big Moutain on Feb. rency has prompted questions and con- or a little lower, we’re still coming be- amounted to almost 10 percent of the 10.8
cerns about its ripple efect on commu- cause of price diferences and because it’s million visitors who spent roughly $3.3
4, according to White- nities like Whiteish and others near the Montana,” Townley said. “It’s majestic billion that year, according to the Univer-
ish Mountain Resort’s
border that have relied heavily on Cana- Montana. There’s skiing. There’s boating. sity of Montana’s Institute for Tourism
Facebook page.
dian visitors and second homeowners as There’s lakes. There’s Glacier National and Recreation Research.
economic cornerstones.
Park. We’re still going to come down for The Canadian buying power extends
But fear not, according to Canadian all of that.”
beyond tourist dollars though.
economist Donna Townley.
Townley estimates the loonie would Between 1984 and 1999, Canadians
84.4%
“The Canadian dollar’s bottom isn’t need to sink below 80 cents U.S. before bought 221 homes in the Flathead Valley.
falling out,” she said last week. “We’re still Canadians might be seriously deterred In 2012, they purchased 225, according to
Montana’s high school coming down to Montana.”
from traveling over the border to shop. Kim Morisaki with Montana West Eco-
graduation rate during
Townley, an instructor from the Uni- The overall cost of Canadian consumer nomic Development.
the 2012-2013 school versity of Lethbridge in Alberta, has fo- goods like produce and retail items has Morisaki gave a presentation at the
year, slighty higher than cused her research in recent years on the increased roughly 10 percent in recent recent economic outlook breakfast high-
economic relationship between North- months due to the weakening loonie. At lighting the strong Canadian presence and
the previous year, ac- west Montana and Canada. Though the the same time, Canada’s harmonized inluence in Northwest Montana. MWED
cording to the Oice of recent luctuation in value should not sales taxes contribute to even steeper staf compiled the data with Townley, lo-
trigger any serious fears among local busi- costs. British Columbia has a roughly 12 cal appraiser Jim Kelley and Flathead
Public Instruction.
ness owners, she acknowledges that her percent sales tax, Alberta’s is 5 percent
County staf, and as it shows, Canadians
countrymen have been spoiled with an and Saskatchewan’s is 10 percent.
are tied closely to Montana’s economy.
outsized loonie that has spiked tourist Canada’s currency enjoyed a slight Morisaki estimated that last year’s
1,040
spending.
uptick in recent days, particularly after lower percentage of Canadian home pur-
As the U.S. emerges from the Great the country’s latest government report chases was due to a considerable increase
Number of roadside as- Recessions and strengthens its own produced better-than-expected news in overall sales.
economy, Canada’s dollar is destined to about job growth. Its unemployment rate “We may have hit the peak,” she said.
sistant calls AAA drop, she said. But even so, the consumer dropped from 7.2 percent to 7 percent, “Canadians have slowed down on their
responded to in Wyo-
ming and Montana on prices and taxes up north still make Mon- leading the loonie to rise a half cent Feb. 7.
purchasing. But even with a slightly weak-
tana a favorable destination, and Town- In January 2013, the Canadian dollar ened dollar we expect they will continue
Feb. 6, a new record.
ley doesn’t foresee a signiicant decline in averaged at 99 cents U.S., according to the to buy here.”
non-resident spending in 2014.
Bank of Canada. Over last year it dropped
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