Re: Iceland eyes loonie, Canada ready to talkMar 3rd, 2012
Speaking of tropical places and Canada, was it not the Turk and Caicos islands in the Caribbean that at one time proposed a joining with Canada?
Could Iceland adopt the loonie? - Business - CBC News
While charing a common currency has its advantages in principle, I must admit that I'm weary for Iceland's sake of simply adopting another country's currency. After all, Canada would maintain control over printing and the bank rate. If iceland simply adopts our currency, this would thus give us control over their currency too.
If we were talking about Canada and Iceland adopting a common currency, I'd say yes. But for one country to simply adopt the other's? I'm less enthusiastic about that, but I'll still acknowledge some advantages still.
Iceland is not proposing to share our currency. The want to use our currency. Our government prints Canadian dollars and then spends it on Icelandic goods and services. Then Icelanders use our $CDN for trade. Basically its a one time transfer of wealth from Iceland to Canada in order to kick start a $CDN based fiscal system in Iceland. Iceland would loose control over their domestic currency and trust us to be fiscally responsible. It a leap of faith on their part, which means they must be desperate.