Suppose the governor of the Bank of Canada announces a new set of reforms which includes a

Question:

Suppose the governor of the Bank of Canada announces a new set of reforms which includes a new anti-inflation program. Assuming the announcement is believed by the public, what will happen to the exchange rate for the Canadian dollar?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

Fantastic news! We've Found the answer you've been seeking!