British Columbians Enjoying Rise In The Canadian Dollar's Value

Vancouver, BC -- With the recent surge of the Canadian dollar relative to the U.S. currency, Ipsos Reid in partnership with Business in Vancouver commissioned a study that revealed British Columbians are resoundingly positive about the impact on Canadian consumers, but are mixed with respect to the perceived impact on Canadian businesses. In contrast, most believe the current situation negatively impacts businesses and consumers south of the border. What is also very clear is that a significant number of BC residents are more likely to shop and vacation in the U.S. as a direct result of recent changes to the exchange rate.

The consensus among British Columbian adults is that the rising Canadian dollar is good for Canadian consumers, both bad and good for Canadian businesses, and generally bad for the U.S. More specifically, half (54%) of British Columbian residents say the rise in the Canadian dollar relative to the U.S. dollar has had a positive impact on them personally with only 11% saying it has had a negative impact. Further, nearly nine-in-ten (88%) say the strong Canadian dollar is a positive for Canadian consumers while approximately six-in-ten (58%) say it has had a positive impact for Canada as a whole (with 21% saying it has had a negative impact for the country as a whole). On the other hand, more than half (58%) of British Columbians agree that the current exchange rate has had negative consequences for Canadian businesses (24% disagree, saying it has had a positive impact for Canadian businesses). Overall, the impact of the exchange rate is viewed more negatively for Americans as nearly three-quarters (72%) of British Columbians say the exchange rate has had a negative impact on American consumers (4% say the opposite) and more than half (56%) say there has been a negative impact for the U.S. as a whole (13% disagree, saying there has been a positive impact).

Going forward, residents say the rise in the Canadian dollar's value is here to stay. Nearly half (48%) forecast the Canadian dollar to reach US$1.05 to US$1.09 over the next three months, while some (23%) say the dollar could reach as high as US$1.10 to US$1.19 and a few (4%) even believe it could exceed US$1.20. Very few believe the value of the dollar will fall to trade for US$1.03 or US$1.04 (14%) or go between US$0.95 and US$1.02 (7%). Looking out over a longer time horizon of one year, British Columbian's feel that the dollar will depreciate over current levels, as more than half (53%) believe it will fall back to somewhere between US$1.04 and US$0.90.

In general, British Columbians are significantly more likely to shop, vacation, invest and purchase property in the U.S. to take advantage of the newfound value of the Canadian dollar. Almost two-thirds (63%) say they are more likely to shop in the U.S. as a result of the rise in the Canadian dollar; only 5% say they are less likely to do so. Similarly, 62% of British Columbians are more likely to go on vacation to a U.S. destination. However, fewer say they are more likely to invest in U.S. stocks (15%) and/or purchase property in the U.S. (13%).

While there is no clear reason attributed to the recent Canadian-U.S. exchange rate changes, the majority feel that government should not take action to reverse this change. Most commonly, British Columbians perceive the high government deficit spending among U.S. governments and/or budget surpluses among Canadian governments as the main reason for the rise in Canadian dollar's value (44%). Further, fully one-quarter (25%) of British Columbians reason that the change is due to the rise in value of commodity prices. Regardless of the cause, more than three-quarters (78%) think the Canadian government should not take action to reverse the rise of the Canadian dollar while 12% would like to see the federal government take action. A further 11% are unsure.

These are the findings of an Ipsos Reid poll fielded November 1-8, 2007 with a representative sample of 657 online adult British Columbians. The exchange rate, at the time, fluctuated between $1.0508 U.S. and $1.1030 U.S for $1 CAN.

The polling was conducted using Ipsos Reid's "Voice of the West Interactive Forum" - an online panel of British Columbians who have been randomly recruited to match the overall characteristics of the adult BC population.

For more information on this news release, please contact:

Steve Mossop
President
Ipsos Reid
(778) 373-5001
[email protected]

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Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey- based market research group.

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