Bank of Canada Governor Says Weak Dollar to Offset Drop in Commodity Prices

The Globe and Mail provided an excerpt of a speech from Bank of Governor Stephen Poloz about the weak Canadian dollar and its effects on the economy, touching on its effects on the resource sector.
As quoted in the publication, Poloz stated:

First, it offsets a part of the drop in commodity prices, which are usually priced in U.S. dollars. In other words, Canadian-dollar revenues for commodity exporters fall by less than U.S. dollar revenues.
Second, the depreciating dollar boosts Canadian-dollar revenues for exporters of other goods, which are also often priced in U.S. dollars. This then allows those companies to compete more effectively for future export sales. Those increased sales eventually mean more growth and rising investment in the non-resource sectors of the economy, and more employment. In other words, the exchange rate decline helps to facilitate a shift in the economy’s growth engine from the commodity sector to the non-commodity sectors.

Click here for the full Globe and Mail article.