Canada's Flaherty says C$ volatility a worry

Wed Oct 7, 2009 5:50pm EDT
 
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OTTAWA (Reuters) - The Canadian government and central bank are concerned about the broader weakness of the U.S. dollar and keep a close eye on volatility in the Canadian currency, Finance Minister Jim Flaherty said on Wednesday.

"Our major concern in Canada always is volatility. Businesses can't plan if we have volatility in our currencies ... so we'd like to watch an orderly market," he told BNN television.

Flaherty said earlier in the day that "we're all concerned internationally with the weakness in the U.S. dollar", a topic which had been discussed at recent G7 and International Monetary Fund meetings in Turkey.

"So we're watching carefully; of course, the governor of the Bank (of Canada) is watching as well," he told reporters.

Flaherty, speaking to BNN, said Canada, China, Britain, the United States and "many other countries" felt it not yet to time to wind down stimulus spending.

"We're all agreed that we have some stabilization in the economy, there is meager evidence of entrenched recovery, that we need to stay the course, keep the spending going, create public demand, because the evidence of private demand is quite limited," he said.

(Reporting by Randall Palmer and David Ljunggren; Editing by Jeffrey Hodgson)