Canadian dollar’s value impacting businesses across the border

NIAGARA FALLS, ONTARIO (WIVB) — The Canadian dollar exchange rate is strongly favoring the U.S. right now. The loonie ended the week exchanging at $1.45 U.S. It’s one of the lowest rates for the Canadian money in a decade.

“The pendalum has shifted the other way,” said Jim Diodati, the Niagara Falls, ON mayor. “Right now it’s hugely to our advantage with the Canadian dollar being devalued right now.”

The devalued dollar is at their advantage because they’re seeing more people cross the border and finding more value for their American money.

“Tourism benefits in a huge way,” said Mayor Diodati. “Our operators here in Niagara Falls have had one of the best seasons ever, certainly in the last decade.”

“We cashed in about $250, $260 and got $350 back so that was really good,” said George Weber, a Buffalo native traveling to the Canadian side for a quick getaway. “[We’re] Definitley going out to eat, hotel, included, drinks entertainment.”

“I was looking at stuff in the store and now the $20 things don’t seem as expensive,” said Nicholas Bills who is visiting with his family from Eastern New York around Kingston.

Diodati says some of the local businesses are reporting 20% to 60% sales increases just over the last month while their dollar has slowly devalued. The cause – oil prices.

“It isn’t worth pulling the crude out of the ground unless it’s a certain price,” said the mayor.

Across the country, there have been major layoffs in the oil industry. It’s likely the price per barrel will remain low, keeping the Canadian dollar’s exchange rate low.

While that’s going on though, the mayor is looking at the positives that come with it.

“Even when there’s a gray cloud, there’s a silver lining,” said Diodati.”The upside to a devalued dollar is increased tourism and in Niagara Falls, that’s a good thing.”

 

WIVB.com provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review. Note: Comments containing links are not allowed.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s