kaskoosek (99.78)

Flocking to currencies that export commodities

March 23, 2009 – Comments (1) | RELATED TICKERS: FXC

The currency that comes to mind is the Candian Dollar.

Canada has a lot of gold, oil and industrial commodities.

So basically exchanging a US dollar for a Canadian dollar is like buying a GLD or USL ETF at very cheap prices.

As the price of these commodities increases, we would expect Canada to generate huge current account surpluses again. If Canada does not start outright printing then the canadian currency is the place to be.