Slumping dollar keeping British Columbians at home
U.S. border businesses suffer as Canadian dollar continues to drop
The Canadian dollar broke through the psychological barrier of 75 cents U.S Tuesday. That's down 18 cents from its highest point in August of last year.
Not surprisingly, the slumping loonie has made cross border shopping less attractive.
The latest data available shows British Columbians made fewer trips to the United States this summer than last summer.
GRAPH: Diving dollar means fewer trips to the States
At the Douglas crossing, B.C.s busiest border, personal vehicle trips were down almost 50,000 in June of 2015 compared to one year ago.
Bellingham/Whatcom Chamber of Commerce President Guy Occhiogrosso say he's heard that some local businesses in the Washington State area have experienced a 20 per cent drop in sales.
"If you look at who is being impacted, for the most part it's the big box retailers," said Occhiogrosso in a phone interview.
"When the dollar dropped below 80 cents, that impacted retail here immediately," he added.
Occhiogrosso says most Belingham area businesses take a shifting exchange rate into account, but if the Canadian dollar slides any lower their survival may be in peril.
"The Canadian dollar is the lowest it's been in years, but it's not the lowest it's ever been," he said. "The real pain point, based on historical figures, and depending on the industry, is 70 to 73 cents."
On the other side of the equation Occhiogrosso says the low loonie is driving an increase in the number of Canadian businesses wanting to expand into the United States.