The recently-announced departure of Bank of Canada Governor, Mark Carney, for governorship of the Bank of England was a surprise to many in the business world. And the international currency markets seemed to reflect that too, with the Loonie dropping within minutes of his announcement on November 25. It recovered quickly, but the movement highlighted how the strength of a currency is influenced by the person at the controls of a national bank.
The British press is, of course, devoting a large amount of column space to speculating on Mr Carney’s possible strategic approaches to managing Britain’s Gross Domestic Product and inflation via monetary policy.
Interestingly, the commentary inside Canada as to who may succeed Mr Carney is far more subdued and a successor remains to be named, despite the influence they will wield. Perhaps we will, again, see an indication of their popularity reflected in the value of the loonie at the time of their announcement.
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- Peter Andersen Monthly Economic Report – November 2012 – Summary (tec-canada.com)
- Osborne springs surprise with Canadian Mark Carney as new Bank Governor (thetimes.co.uk)
- Carney: What the analysts say (business.financialpost.com)