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本帖最后由 monicapharm 于 2013-2-25 15:39 编辑 $ l1 A4 D# [/ i# U4 e
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Everyone loves to see lower Canadian currency, including the Oil and Gas industry. With low currency, the Eastern Canada gets a much need boost for their manufacture industry, as more orders from the US. It works the same for Oil and Gas for western Canada. ' f, D3 `6 X4 m: `* F
To elaborate it further, when the currency is at par, any investor from the US has to pay the Canadian worker 40 cad per hour (for example) or 40 US dollar per hour, which is the same for the US worker. When the CAD gets lower, say 1.1:1 (CAD:US), that means the same investor still pay the canadian worker 40 CAD, but he actually only spend 36 US dollars, which means his cost is reduced. % ^9 I5 }3 T" b2 F
Regarding company revenue, currently our crude oil catches 70 some US dollars per barrel. With lower currency, the market still give you 70 US dollars, but the Canadian companies actually get 77 CAD, which means higher revenue. 5 d" I- h H- Q8 X5 a
Plus, with depreciated dollar value, the Canadian Fed can finally increase the rate to curb bubbles in the real estate.
9 ]3 c% }: L- K& q/ Y, B# l& qAll in all, lower currency is a good thing for Canadian economy.
1 }. X% z1 J# _$ qAs for the layoffs you see, it might be the results of the outsourcing trend in this industry right now. Believe it or not, many big oil companies is considering outsource their engineering work to consulting firms in Asia. |
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