Vulnerability of Canadian manufacturers to exchange rate

Summary With a record quarterly depreciation of 14%, the USD/CAD exchange rate came to the rescue of Canadian manufacturers in 2008Q4. The situation has since turned around with an appreciation of about 10% over Q1. This is bad news for our manufacturers already operating under recession circumstances. By our simulations, nine industries accounting for 27% of Canadian manufacturing shipments are quite vulnerable to an exchange rate holding on average at US$0.88. The 13 other industries should