Canada's finance minister says economy can grow with strong currency

NEW YORK (Reuters) - Canadian Finance Minister Bill Moneau said on Thursday the Canadian economy will continue to succeed even as the currency rises and interest rates rise.

Finance Minister Bill Monea in Canada will attend a press conference at Ottawa, Ontario, Canada on July 18, 2017. REUTERS / Chris Wattie

At the Canadian bond meeting held in Bloomberg News in New York, Mr. Moren said the "current level" of the Canadian dollar reflects economic power.

"We can continue to succeed at this level," he added. He pointed out that the government should continue to invest in productivity and infrastructure.

So far this year, the Canadian dollar has surged more than 8% against the US dollar, supported by the rise in the two interest rates, and economic performance made Canada a leader among the G7 countries.

In the afternoon trading, the Canadian dollar rose 0.2% against the US dollar at the Canadian dollar of 1.2347

Canadian bank policy makers said central banks will pay close attention to how the economy responds to higher interest rates and stronger Canadian dollars earlier this month.

Moren also said he is not concerned about higher interest rates. He added that high interest rates are a result of a strong economic performance, like the high Canadian dollar.

Thanks to consumption expenditure and strong energy exports, the Canadian economy recorded the highest growth rate in the second quarter in nearly six years. The annual growth rate of GDP is 5%, the highest growth rate since the third quarter of 2011.

However, Mr. Morneau said Canada has been tightening monetary policy, but interest rates are still at historically low levels.

When asked about the fiscal deficit, Canadian financial officials pointed to a positive trend. He said the government exceeded expectations and noted that the current budget deficit is less than 1% of GDP. He said that this is lower than the expected gap of about 5% of GDP.

The government is responsible for deciding whether the economy enters or leaves the recession. Since it produced the country's economic report using the data collected by the Canadian Bureau of Statistics, it was communicated via the Central Bank of Canada or the Treasury Secretary. Since 2015, the Federal Balanced Budget Act defines the conditions of recession and sets some restrictions on federal government response to the increase in operating budget. Economists and governments are trying to find some degree of economic activity to predict whether economic downturn is about to occur or not. These are called leading indicators. Examples include sharp declines in stock markets, declining retail sales, rising inventory levels held by companies, and sharp declines in housing prices. Likewise, there is a measure of economic activity, that is, an indicator of delay, to confirm that a depression has occurred.

Canadian Bank is the central bank of the country. In addition, the Minister of Finance and the Minister of Industry are using the Canadian Bureau of Statistics for planning financial and economic policies. Canadian Bank is the only institution authorized to issue currencies in the form of Canadian bank notes. Banks do not issue Canadian coins; they are issued by noble Canadian mints. The "Canadian Constitution" is the highest law of that country, and it consists of undetermined rules by text and written documents. The 1867 Constitution Act (formerly known as the "North American Act of 1982" before 1982) confirmed governance based on Congressional precedents and the separation of power between the federal government and the state government. In 1931, the Westminster law admits complete autonomy, the 1982 Constitution Act abolishes all legislative relations with the UK, added constitutional amendment ceremonies and Canadian rights and free charters.

In October 2012, CXI filed a letter to the Finance Minister of Canada and continued Canadian Currency Exchange International, its wholly-owned subsidiary as a bank based on Canadian banking law. This subsidiary is operated under the Canadian Foreign Currency Bank of Canada, replacing Canadian Canadian banks with French and placing its head office in Toronto. In September 2016, the Canadian foreign currency exchange office got the opening and operation of the English Canadian Foreign Exchange Bank (EBC) and the Canadian bank in Canada, and currently operates one bank of schedule in the form of Canada doing. Following the "patent certificate" issued by the Ministry of Finance, the Canadian Financial Institution Agency (OSFI) continued to order as a federal regulatory financial institution.