Noting that the Bank is fast running out of ways to contain the loonie, Shenfeld points to a weapon that can fight fire with fire. “Canada could match foreign central bank intervention in favour of our currency with an offsetting intervention, selling an equivalent volume of loonies, says Shenfeld. “That would simply move back to market determined exchange rates, and would loosen the death grip on the Canadian dollar.”

Click here for full text in Advisor magazine