RE: Can Someone ExplainHaven't read any news on this or know of what kind of injection they are doing. However this makes sence to me.
With our CND $ doing as well as it is the BOC is certainly in a position to print more currency and inject it into the market/system without too much impact in the value of our dollar. One of the reasons for the US $ doing as poorly is that they have been printing lots of money to pay for the war in Iraq. It makes me think of the movie "Flags of our Father" where they were using the soldiers to promote the war bonds. During that time in history the US dollar was also falling badly because they were needing to print money to try to pay for the war. They were hoping Americans would support and fund the war by purchasing the war bonds and not need to print additional currency. I would think if the war continues you won't see much change in the current situation and that the CND $ will remain strong... unless BOC begins a RATE cutting campain in an effort to devalue the CND $ to help CND manufacturing sector and the farmers. Only time will tell, but I am already seeing signs that prices are coming down in CND. Walmart as an example has been quick to pass any saving on to the CND consumer.