OTTAWA - A leading economic think-tank is warning Canadian firms they are putting their long-term futures in peril if they ignore the loonie's long-term rise.
The Conference Board of Canada says Canadian firms risk losing their international competitiveness if they do nothing to counter its rise.
The Canadian and American dollars have been hovering around parity for the past few days, but economists expect the loonie's value will eventually surpass the greenback for an extended period.
The Conference Board says businesses have only two real options to cope with the loonie: boost productivity and become more international.
The report says the strong dollar may be a blessing for companies that adapt because it will unlock their potential to prosper in the global economy.
However the higher Canadian dollar has been hard on industries that export their goods, particularly manufacturers that supply the U.S. market.
UBS Securities estimates the loonie's rise since 2002 has hit exports by 14 percentage points, with a loss of 553,000 Canadian manufacturing jobs.
The Conference Board report was released as the Canadian dollar gave up some of its recent gains, falling to just under 99.3 cents US at midmorning.
