The Standing Senate Committee on Banking, Trade and Commerce has launched an inquiry into the recent decline in the Canadian dollar, and its impact on the economy.

With the dollar recently declining to its lowest level since 2003, the Senate committee announced on Wednesday that it is undertaking a detailed study into the sliding value of the loonie.

The committee acknowledges that the decline in the dollar is largely due to the fall in oil prices, and the relative strength of the U.S. economy, but “it will be calling economists from the banking and financial sectors and from government to contribute to a more detailed picture,” the Senate committee says in a statement.

The Senate committee will also examine the impact of trade agreements, the effect of the diverging approaches to monetary policy in Canada and the U.S., and to consider federal policy changes that could mitigate the negative impact of a weak Canadian dollar, the statement adds.

“Canadians deserves some clarity on what is happening with their dollar and why. This is not something that is abstract to them, it has an impact on their everyday life. Through this study, the Banking, Trade and Commerce Committee can help provide them with some of that clarity,” says Senator David Tkachuk, chairman of the committee.

“We need more than a low dollar for exportation, Canada needs a new and comprehensive trade strategy,” adds deputy chairwoman, Senator Céline Hervieux-Payette.