The Globe And Mail

Canadian envoy to Iceland sparks loonie controversy
The Globe And Mail

Iceland’s newfound love for the loonie is sparking a wave of controversy, from Reykjavik to Ottawa. For 150 years, the rest of the world has shown scant interest in the Canadian dollar – the poor cousin to the coveted U.S. greenback.

But now tiny Iceland, still reeling from the aftershocks of the devastating collapse of its banks in 2008, is looking longingly to the loonie as the salvation from wild economic gyrations and suffocating capital controls.

Canadian ambassador to Iceland Alan Bones had planned to deliver remarks to a conference on the future of the Icelandic Krona, making it clear that if Iceland decided to adopt the Canadian dollar, with all its inherent risks, Canada was ready to talk.

There’s a compelling economic case why Iceland would want to adopt the Canadian dollar. It offers the tantalizing prospect of a stable, liquid currency that roughly tracks global commodity prices, nicely matching Iceland’s own economy, which is dependent on fish and aluminum exports, and in the future, energy. In a recent Gallup poll, seven out of 10 Icelanders said they would happily dump their volatile and fragile krona for another currency. Their favoured alternative is the Canadian dollar, easily outscoring the U.S. dollar, the euro and the Norwegian krone.

Au moment d’écrire ces lignes, avec 1 couronne islandaise on peut acheter 0,008 dollar canadien…

Cette nouvelle est intéressante, car au Québec, et maintenant en Ontario, on ne cesse de répéter que la parité du dollar canadien avec le dollar américain affaiblit notre économie, on parle fréquemment de la « maladie hollandaise ».

Pourtant, l’Islande désire adopter une monnaie qui est beaucoup plus forte que la sienne, parce qu’elle considère que la stabilité de la monnaie canadienne représente un avantage indéniable pour son construire une économie forte.

Comme quoi la « maladie hollandaise » est un mal qui préoccupe essentiellement les hypocondriaques…