(May 10 – 15:25 ET)- In his first speech since he announced his retirement as chief executive officer of Industrial-Alliance Life Insurance Company, Raymond Garneau voiced his opposition to the establishment of a common currency with the United States.

“Not only is the establishment of a common currency with the United States not viable on the political front, but such a measure could have a negative impact on Canada’s economy,” said Garneau to the members of the Quebec chapter of the Montreal Society of Financial Analysts.

Garneau, who continues to act as chairman of the board of Industrial-Alliance, does not see how, on the political front, Canada and the United States would agree to abandon their respective dollars to adopt a new common currency. “To abandon one’s currency,” said Garneau, “is to abandon part of one’s sovereignty. I don’t think the United States would agree to abandon a part of their sovereignty to create an Americo which would be the Euro’s counterpart, with a country that is many times smaller than their own.”

Garneau estimates that “if there were a possible path, it would be for Canada to adopt the U.S. dollar and negotiate representation in the Federal Reserve Bank where, at best, we would be given nominal representation, because the United States would never agree to be on equal footing with Canada.”

The other possibility, according to Garneau, would be to have a permanent and fixed exchange rate between the U.S. dollar and the Canadian dollar. “This option would require the creation of an exchange stabilization fund which would have the solid footing needed to handle upheavals,” said Garneau.

Garneau was minister of finance and president of the Treasury Board of Quebec from 1970 to 1976. In 1980, he was appointed chairman of the board and CEO of the Montreal City and District Savings Bank, now known as the Laurentian Bank. Garneau was also MP for the Laval-des-Rapides riding in the House of Commons, in Ottawa, from 1984 to 1988. He joined Industrial-Alliance at the end of 1988, where he eventually became chairman of the board and CEO.
-IE Staff