Dodge Says Single Currency "possible"
Date: Tuesday, May 22 2007
Topic:
BARRIE MCKENNA
From Tuesday's Globe and Mail
May 21, 2007 at 8:50 PM EDT
WASHINGTON — Bank of Canada Governor David Dodge says North America could one day embrace a euro-style single currency.
But to get there, Canada, the United States and Mexico must first tear down barriers to the free flow of labour, which he pointed out Monday have “gotten a bit thicker” in recent years.
Answering questions from the audience after a speech in Chicago, Mr. Dodge said a single currency was “possible.”
The idea of a common currency has long been a subject of curiosity, particularly among Canadian academics, who see it as a way to escape sharp gyrations in the exchange rate.
The recent surge in the Canadian dollar to a 30-year high against the U.S. currency makes Canadian products a lot less competitive in Canada's major foreign market. The high loonie also makes Canada a more expensive tourist destination.
Some proponents have dubbed the single North American currency the “amero.”
It is more likely, however, that a common currency would mean that Canada and Mexico would adopt the U.S. dollar, giving up significant economic control to a central bank dominated by the United States.
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