QUESTION PERIOD — Finance
State of the Economy
October 29, 2026
My question is for the Leader of the Government in the Senate. Senator Moreau, given your many years of experience in government, as well as the private sector, could you share with us your views on why the Canadian dollar has been tanking and reaching historic lows? Can you highlight what you believe might be the impact of that weak dollar on the cost of living, on the purchasing power of the Canadian economy and for Canadian citizens generally?
We have a geopolitical situation that is, I would say, unprecedented in Canada because of what is happening with our major trade partner and what is happening in the world. The fact is that there are wars that have led to real issues for the global economy. It’s not only here in Canada. That is the reason the government is acting on many fronts to ensure that affordability is taken into consideration. The government has made affordability a priority with respect to a number of issues here in Canada. That being said, many of these situations are not under the control of the federal government. They are worldwide situations, and I think Canadians understand that.
Government leader, I think most economists would actually argue the contrary. When you run high debts and deficits, it will invariably create a lack of confidence in the Canadian economy and the Canadian dollar. If you have a Canadian dollar that is tanking, it will impact your capacity to buy things and will drive up the cost of living. Right now, even the Mexican peso is stronger than the Canadian dollar given the context of this trade war.
Does the government recognize we have a problem? What measures are being taken to strengthen our Canadian dollar, besides driving up interest rates?
This is something I repeat often: Among G7 countries, Canada has the strongest credit rating, AAA, from Standard & Poor’s and Moody’s. Canada has the lowest debt-to-GDP ratio and the second-lowest deficit-to-GDP ratio in the G7. This means that the Canadian economy is resilient, and the government is ensuring that this resilience will be maintained over the —
Thank you, Senator Moreau.
