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The Canadian dollar has fallen nearly seven percent against the U.S. currency in the past year, leading to expectations that Canadian manufacturing and exports would drive the economy higher.
But former Chief Economic Analyst at Statistics Canada, Philip Cross, tells BNN the drawbacks of a weak Canadian dollar to consumers, the government and businesses that purchase foreign goods far outweigh the limited benefits to the manufacturing sector.
The Canadian dollar weakened against the greenback on Friday, retreating from a strong gain the previous session, as worries ahead of a referendum in Crimea on separating from Ukraine prompted investors to push into safer assets.