The rise in Canada's currency "makes sense" because investors are snapping up the country's assets and the economy is growing nicely, Finance Minister Jim Flaherty said yesterday. It's a different world from the heady days of 2007, when the Canadian dollar zoomed up to a high near US$1.10, Mr. Flaherty said. Then, speculators were at the heart of the rise, he said, while this time he credits the strong economy. "There's more demand for Canadian investments. So the upward pressure on the dollar to me makes sense," said Mr.

A Greenberg Center for Geoeconomic Studies (CGS) Capital Flows Quarterly The dollar's status as the world's reserve currency has become a facet of U.S. power, allowing the United States to borrow effortlessly and sustain an assertive foreign policy. But the capital inflows associated with the dollar's reserve-currency status have created a vulnerability, too, one that Francis E. Warnock argues came close to causing a foreign sell-off of U.S. securities and subsequent rise in U.S. interest rates in 2009.

The White House Office of the Press Secretary For Immediate Release June 27, 2010 Remarks by President Obama at G-20 Press Conference in Toronto, Canada Intercontinental Hotel, Toronto, Canada 6:03 P.M.

With the Canadian dollar near parity to its US counterpart, monetary policymakers should reject pressure to limit future interest rate increases in response to fears that the loonie's level is too high, according to a C.D. Howe Institute study.

Prime Minister of Canada June 27, 2010

From financial reform to climate change to maternal health, this weekend's G8 and G20 summits will cover a seemingly disparate agenda of current issues that are affecting countries around the world. Tying them together is the need for a stable global economy and potentially preventing any concrete achievements are countries' individual agendas. Coming to the table with somewhat different objectives, having faired differently over the past two years, are the host country Canada and their southern neighbour, the US.

Kevin Carmichael, The Globe and MailFinance Minister Jim Flaherty signalled comfort with a strong Canadian dollar, saying its the byproduct of sound fiscal policies and the fastest growing economy in the Group of Seven leading industrial countries. "It makes sense that the Canadian dollar would have relative strength because of the relative strength of the fiscal management in Canada and the fact that Canada has weathered the recession better than any other country in the G7, our direct competitors," Mr. Flaherty told reporters after a speech on Monday.

In an attempt to limit money laundering by drug traffickers, the Mexican government hasimposed new currency controls.