Finance Minister Bill Morneau announced in a recent budget that the federal government will begin issuing no-risk Canadian dollar notes in 2018.
“Our currency is designed to be a safe haven, not a vehicle for illicit activity,” Morneau said.
“The government will continue to maintain a zero-risk approach to foreign currency.”
It’s the latest effort by the government to stem the bleeding from the Great Recession.
Canada was hit hard by the Great Depression and Great Recession, which cost more than a billion dollars in lost income for the average Canadian family.
In 2008, the government imposed capital controls and imposed restrictions on certain businesses.
The Canadian dollar gained more than 1.3% against the U.S. dollar in February.
Morneau has made no secret of his desire to address the crisis, but he’s faced criticism from both the opposition and opposition-aligned groups that his measures have been overly targeted and have limited the impact of the measures.
Opposition critic Charlie Angus said he was worried about the impact that the measures will have on the Canadian economy.
“If you look at the history of these measures, they have never been used in a way that they could have a significant impact on the economy,” Angus said.
Angus is not alone in that concern.
The government has been under increasing pressure from some groups who are worried that the changes could be a backdoor to devaluing the Canadian dollar in an effort to get it to trade with the U,S., a move that would send it back to the level it was at when the measures were first introduced.
The measures would allow for the government’s exchange rate to be set at a lower rate and would only affect Canada’s foreign exchange reserves, a relatively small number of foreign assets the government holds in reserve against potential currency fluctuations.
It’s unclear how the measures would affect the Canadian bank balance sheet.
The Conservatives’ plan to eliminate the $1-million cap on interest payments for those on low incomes and those with disabilities is also set to expire in 2022.
This would likely put pressure on banks to stop lending to Canadians, which would have negative economic consequences.
In a statement on Monday, Finance Minister James Moore said that the government was “considering the impact on bank lending to low- and moderate-income households.”
He said the government would be considering further steps to protect the banking system from any adverse impacts of this policy, including “potentially restricting access to foreign exchange by Canadian banks.”
“In addition to measures to strengthen financial stability, the Government of Canada is also committed to providing Canadians with financial protection through a new credit limit,” Moore said.
The announcement comes as Morneau and Finance Minister Judy Foote have been sparring over the government-commissioned economic review.
Foote was critical of the report that was commissioned by the Conservative government, saying it “seems to have been designed to further the interests of a few large financial institutions.”
Foote and Morneau were scheduled to speak at the same event on Monday.
Moralez said the two have been speaking about the review for a while, but “it is not in my job description to speak on their behalf.
The focus is on the work of the Government’s team.”
Footes’ office did not immediately respond to a request for comment.
Morale in the government The Liberals’ economic plan was praised by the economist Jim Stanford, who served as chief economist at the U of T and Canada’s economic adviser to the World Bank from 2009 to 2013.
He called it “a solid, coherent and balanced economic plan that would help the country regain the confidence it needs to move forward in the global economy.”
“It’s a great step in the right direction,” Stanford said in a statement.
“It would certainly provide a boost to economic growth in the short-term, but will take a lot of hard work and sacrifice for years to come.”
Stanford said the plan would also “help mitigate the adverse impacts on the real economy from the recession and help to bring the economy back into full health.”