Loonie Traders Buoyed by Fastest Population Growth Since 1971
- Immigration boom has been a main driver of Canada’s economy
- Loonie has strengthened by 3.5% against the greenback in 2019
International migration drove the fastest quarterly jump in Canada’s population since at least 1971.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
In an era of low global interest rates, currency traders will have to look elsewhere for an impetus. In Canada, they can bank on population growth.
The flood of immigrants and non-permanent residents to levels not seen in a century has been one of the main drivers supporting Canada’s economic expansion over the past several years. That has kept the Bank of Canada as an outlier in the global easing trend as it held its policy rate unchanged, bolstering the allure of the loonie.