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The Canadian dollar is off to a strong start against the U.S. dollar and it looks like the Canadian Dollar could get a boost after the Canadian and U.K. governments decided to phase out their exchange rate, The Globe and Mail’s David Pugliese reported.

“We’re looking to see what the next steps are,” said Robert Pomeranz, chief economist at Citi Research in Toronto.

“For the moment, it looks as though the two currencies are very close to their new levels.”

Bloomberg reported the two nations agreed to the exchange rate changes in February and are hoping to keep it for another five to 10 years.

“This is one of the more significant moves in Canadian currency markets in recent memory, and we’re looking forward to seeing it continue to strengthen in the months ahead,” Pomerantz said.

“The decision to phase-out the exchange rates between Canada and the U:S.

has been made on the basis of a strong outlook for growth in both countries.

In terms of its immediate effect, the exchange-rate phase-outs will be largely temporary and will provide a modest but positive boost to the Canadian economy.”

The Bank of Canada said the decision will provide an “intangible benefit to Canadian businesses and consumers,” and it will “help to spur the recovery in both economies.”

The move to phaseout the Canadian dollar, which has been a key factor in the value of the Canadian currency, has been widely hailed as a positive for the economy.

However, the move could have negative consequences for the value and growth of the currency.

“It will likely affect Canada’s growth prospects and its outlook for the rest of the year,” Puglieses said.

“The currency could even start to decline, and that would be a problem for Canada and for the world economy.”

Brent crude prices dropped to a record low of $39.25 a barrel on Friday after data showed the U., U.k., and Germany met their own target for global economic growth.

The U.N. agency said it expects growth to slow to 1.5 per cent this year, the weakest performance since the 2008 financial crisis, and the unemployment rate to hit 9 per cent.

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