Iceland looking at the loonie, Canadian govt expected to say they're OK with the idea Saturday - Polidicks

[quote] [IMG]http://www.animalspot.net/wp-content/uploads/2011/12/Common-Loon-Images.jpg[/IMG] [B]Iceland can use the Canadian dollar if it so wishes, Canada’s ambassador to the country is expected to say Saturday.[/B] [B]According to a report in the Globe and Mail, Alan Bones is expected to give a speech to Iceland’s opposition Progressive Party announcing that Canada won’t object to Iceland unilaterally deciding to use the loonie[/B] -- so long as the Nordic country is aware of the risks. Economists in Iceland suggested last summer that the country [B]could stabilize its economy by adopting the Canadian dollar.[/B] Iceland’s economy suffered a crushing blow in 2008 when its banking sector went bust, causing its currency to collapse. The krona lost about 60 per cent of its value and has not recovered. To stabilize the economy, the government instituted currency controls that prevent anyone from taking more than the equivalent of $3,000 out of the country. That has made Iceland an unattractive place for foreign investors. The currency controls are slated to come down, but many Icelandic economists worry that will mean a return to economic instability. Some of them have suggested simply replacing the Icelandic krona with another, more stable, currency. I[B]n a recent poll, some 70 per cent of Icelanders said they would favour dropping the krona in favour of a foreign currency, and the Canadian dollar was the most preferred option, the Globe and Mail reports.[/B] [IMG]http://www.cbc.ca/gfx/images/news/topstories/2012/03/02/li-loonie620-cp01324872.jpg[/IMG] [B]Canada’s currency has developed a very positive reputation around the world, thanks to its solid run-up in value in recent years -- largely due to energy exports -- and due to the perception that Canada avoided the financial crisis that hit banks in the U.S., U.K. and elsewhere.[/B] For Canada, having Iceland use the loonie would likely have little effect. Canada’s economy was valued at $1.8 trillion in 2011, while Iceland, with a population of around 315,000, had an economy of around $14 billion. Canadian policymakers would barely have to take into account Iceland’s use of the loonie when setting policy. [B]The Bank of Canada reflected this reality when it previously said it had no problem with Iceland adopting the Canadian dollar.[/B] But it’s for that same reason that Canada’s ambassador to Iceland is expected to warn Icelanders that adopting the loonie can come with risks. As the Greek debt crisis has shown, countries can suffer serious economic difficulties when they can’t control their own monetary policy. Many economists argue Greece would have had a much easier time bringing itself out of a debt crisis if it had been able to devalue its own currency, essentially shrinking away its debt. But because Greece uses the euro, whose policies are made at the European Central Bank in Frankfurt, that was not an option. Iceland may face similar problems if it chooses to adopt the loonie. If Canada sets its interest rate too high or too low for Iceland’s economic conditions, it could cause economic distortions such as recession or excessive inflation. For Icelanders, however, fear of a return to the instability of 2008 may be a more pressing issue, and there may be another factor -- a romantic view of Canada and its economy. “The average person looks at it this way: Canada is a younger version of the U.S. Canada has more natural resources than the U.S., it’s less developed, has more land, lots of water,” economist Heidar Gudjonsson of the Research Center for Social and Economic Studies told the Globe. “And Canada thinks about the Arctic.” [/quote] I'm okay with this, but there are no loons in Iceland.. just ice. If the day does come and Iceland uses the Canadian dollar I will feel incredibly smug.

This is making me stupidly excited, I love Iceland

Awesome, more power for the dollar.

Today I learned 'loonie' is a term for the Canadian dollar

Is this saying the Canadian dollar would become the standard currency in Iceland or just that they will accept Canadian money as a secondary currency. Kind of like how you can spend American dollars in Canadian shops.

[QUOTE=smurfy;34966645]Today I learned 'loonie' is a term for the Canadian dollar[/QUOTE] I thought this was going to be about a crazy canadian. Now I know that a loon is a bird, a crazy person, and a nickname for the canadian dollar

[QUOTE=PvtCupcakes;34966661]Is this saying the Canadian dollar would become the standard currency in Iceland or just that they will accept Canadian money as a secondary currency. Kind of like how you can spend American dollars in Canadian shops.[/QUOTE] AFAIK you can't spend USD in Canadian stores. You have to exchange it at the bank.

[QUOTE=Medevilae;34966682]It's about them adopting it as their official currency. Depends on the business.[/QUOTE] If its a tiny shop then maybe, probably not. People stopped spending USD since it became worth less then the loonie.

[QUOTE=Auth;34966681]AFAIK you can't spend USD in Canadian stores. You have to exchange it at the bank.[/QUOTE] Border towns are cool with it. Places like Windsor, that are literally on the border, take American money. It also depends on the type of business.

a loonie joke involving bjork is just too easy.

Canada STRONG! Super power in the making step the fuck back

[QUOTE=Auth;34966681]AFAIK you can't spend USD in Canadian stores. You have to exchange it at the bank.[/QUOTE] Uh, yes you can. I did it like two months ago.

[QUOTE=HorizoN;34967441]Uh, yes you can. I did it like two months ago.[/QUOTE] There is more then one store in Canada.

We ride polar bears to school, it's pretty fun. --- In Iceland.

Complete detailed map of Canada, You can clearly see 1st street outlined in all its glory on this map. [IMG]http://upload.wikimedia.org/wikipedia/commons/8/89/TransCanadaHWY.png[/IMG]

You forgot the link by the way. Also, the [url=http://www.theglobeandmail.com/report-on-business/economy/currencies/iceland-envoys-planned-remarks-on-loonie-spark-krona-controversy/article2356634/]speech was cancelled[/url] after word got out to the globe and mail. The plan probably will go through though, they just didn't want it being publicity stunt.

This is some neat news. Also somewhat related: we should totally stop making one cent coins, they are pretty useless and expensive to make.

no more krona? Does this mean EVE is renaming their currency too?

[quote]Iceland’s economy suffered a crushing blow in 2008 when its banking sector went bust, causing its currency to collapse.[/quote] maybe next time you won't completely deregulate your entire economy eh iceland? schmucks (this is what I'm talking about) - from the documentary Inside Job [media]http://www.youtube.com/watch?v=_96zE8minOg[/media]

[QUOTE=Auth;34966681]AFAIK you can't spend USD in Canadian stores. You have to exchange it at the bank.[/QUOTE] every store where I am will exchange at the store

Wow, we're letting Iceland adopt our dollar? How is this going to affect the value of the loonie? Won't this mean the economic conditions in Iceland will have an effect on the value of our dollar, or does economics not work like that? Also, I'm excited because our dollar is popular now!

nooooooooooooo the loonie made our currency cool i don't wanna share it ! ! ! atleast you pricks aren't getting the toonie [img]http://canadamagicshop.com/wp-content/themes/shopperpress/thumbs/dblsidetwoonie.jpg[/img]

I thought loonie was a foreign spelling of Loon.. not some Canadian currency

[QUOTE=smurfy;34966645]Today I learned 'loonie' is a term for the Canadian dollar[/QUOTE] I learned it from How I Met Your Mother :v:

Aww, we're so polite. <3

I wish we over in the US would switch over to one and two-dollar coins. We've been steadily getting the one dollar coins out there, but not enough. Also, it's been my experience in Windsor and London that most large businesses won't accept US currency, but small shops do. In the US, or at least in Michigan, Canadian coinage is accepted usually, but never paper money.

[QUOTE='[Seed Eater];34969581']I wish we over in the US would switch over to one and two-dollar coins. We've been steadily getting the one dollar coins out there, but not enough.[/QUOTE] I once got one of your one dollar coins in my change. My reaction was something like, [I]"What the shit is this fuck?"[/I] I thought it was fake at first. Let's face it, we're just flattered for the attention. It seems like no news that comes out of Canada is ever good anymore - oilsands this and seal hunt that - and that's all people ever hear about. As it turns out we've been running the world's smoothest economy for the past decade and no one has been paying any attention to it until the past 6 months when suddenly we've become a model of prosperity.

It's for me to go to bed. I had to reread that title four times before I figured out they meant the Canadian loonie as in the currency. This is especially bad for me because I live just across the Strait from Victoria, and have been over there a few times. :v:

Why Canada instead of one of the other Scandinavian countries?

[QUOTE=jeimizu;34970490]Why Canada instead of one of the other Scandinavian countries?[/QUOTE] Because ours is [I]better[/I]