Forex Blog: Currency Trading News & Analysis.

March 2nd 2005

Canada suffers capital outflow

The Canadian Dollar has been losing ground to the USD of late, as Canadians are rushing to invest in foreign capital markets. Canadian law previously forbade pension funds from investing more than 30% of their assets in foreign securities. After the rule was scrapped, Canadian pension funds rushed to invest capital in foreign (US) debt and equity markets, which caused the Canadian Dollar to depreciate. Nonetheless, most experts remain bullish on their CAD forecasts. Rising commodity prices and a loosening of foreign ownership restrictions, will more than offset the outflow of CAD. BMO Nesbitt Burns reports:

For instance, 2004 saw portfolio capital inflows of $53.2 billion into Canada compared with a mere $16.2 billion outflow from domestic investors.

Read More: Greenback Treading Water

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Exotic Currencies | No Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2023 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.