"The inflation target and a floating exchange rate work well together—indeed they reinforce each other. This approach has worked extraordinarily well for us over the last decade."
— Governor David Dodge, Canada's Experience with Inflation Targets and a Flexible Exchange Rate: Lessons Learned (speech)
Canada's flexible exchange rate permits us to pursue an independent monetary policy suited to the needs of our own economy and acts as a "shock absorber." More information:
Why Canada Needs a Flexible Exchange Rate
Working paper by John Murray, 1999.
Daily, monthly, and annual exchange rates
Data: Canadian dollar vis-à-vis foreign currencies.
A History of the Canadian Dollar
Book by James Powell.