The appreciation of the Canadian dollar reduces the competitiveness of exports by making them pricier globally, affecting sectors like manufacturing, natural resources, and agriculture. However, it also opens opportunities for innovation, strategic growth, and cheaper imports, necessitating businesses to adopt adaptive strategies for sustained competitiveness.

The Bank of Canada's policies significantly shape Canada's economy by influencing interest rates, affecting everything from borrowing and saving to real estate and business investments. These policies impact consumer behavior, inflation, and the strength of the Canadian dollar, underscoring their crucial role in economic stability and growth.