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| Subject: Canadaian Dollar Problem |
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Well folks the Canadian dollar is now at 99.86 cents US this morning and is expected to reach par by the closing bell today.
The problem is many things still cost more in Canada then in the States. A thirty dollar book in the States can cost $45.00 in Canada. The media announced this morning that it may take two years of the Canadian dollar being equal to the American dollar to have all the prices adjusted correctly.
Some representatives charged their clients in Canadian funds to attempt to give their clients a break and are now benifitting from the strong Canadian dollar.
Certain applicants who have waited for years to be approved are finding it difficult to find the settlement funds to immigrate.
With evey good thing that happens there sometimes is an opposite unexpected result.
Roy
www.cvimmigration.com
[20-09-2007,10:10]
[**.52.217.218]
Roy |
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(in reply to: Canadaian Dollar Problem)
I´m also thinking over this issue for the past few days, already heard that more Canadians are shopping in the US now. I guess border custom officers will need extra reinforcement now, who knows may amend the current tax rules to protect Canadian business.
I´m personally happy though; good time to bring my rest of CDN. bucks now.
[20-09-2007,11:45]
[***.254.208.242]
Departed_Canadian |
(in reply to: Canadaian Dollar Problem)
And more expensive for us Americans with U.S. savings to move to Canada and buy already costly real estate, especially in the big cities there.
[20-09-2007,12:39]
[**.47.168.204]
Richard |
(in reply to: Canadaian Dollar Problem)
Richard,
Similar to one bank of river breaks and another side builds. Feeling sorry for guys like you.
I´m kind a lucky in this way, I got 1.6 when I moved Canada also.
Big question is how long this can continue? I don´t have solid knowledge of economics to say, but very curious about it.
[20-09-2007,12:51]
[***.254.208.242]
Departed_Canadian |
(in reply to: Canadaian Dollar Problem)
DC,
I remember 1.6 a couple years ago, and those of us south of the border should have followed your example then and jumped on the chance to exchange at that rate. You´re in good shape I think.
Both U.S. and Canadian economists I´ve listened to lately have been predicting par value or better for CDN$ by the end of 2007 or into 2008. Looks like that´s happening sooner than expected. It´s apparently the mineral and resource mining that´s doing so well in the Canadian frozen north pumping up the Canadian dollar internationally.
Economists are also recommending when par value occurs, to go "short" on the CDN$ (sell CDN$ and buy US$). The rationale is that par value will not last forever, since by economic fact and logic a country with a population of 300 million vs. 30 million will always outproduce in volume and market reach, and therefore its currency should normally be valued higher.
I think I´d wait a bit to see if the rate goes sub-par (.95-.99 CDN$ to 1 US$) and then exchange. (I still have some CDN$ savings too from my time in Canada.) Good time for Canadians to invest in U.S. currency. Interesting and appropriate timing post on this from Roy.
[20-09-2007,13:52]
[**.47.168.204]
Richard |
(in reply to: Canadaian Dollar Problem)
Richard,
Thanks for your inputs and the reference. I also have similar idea, this won´t last for long.
I also think just out of sense that when Canadian investors now start investing in the US more, will have some negaitve impact on loonie, also increasing Canadians shopping from the US may have little effect.
[20-09-2007,14:20]
[***.254.208.242]
Departed_Canadian |
(in reply to: Canadaian Dollar Problem)
the Canadian economy is commodity based so as long as countries like China are running at maximum capacity, Canada will be doing well. As long as the US economy needing to fund a war and keeps lending money to people that can´t make the payments... well the economy is going to struggle and therefore the dollar will do the same. Don´t forget... we have oil too!!!
I suspect we may settle down at the 85cent mark. We won´t go back to the 65 cent range any time soon.
What should be more alarming is the muttering that the Euro should be the world currency rather than the US dollar.
[20-09-2007,14:49]
[***.121.220.199]
sharon |
(in reply to: Canadaian Dollar Problem)
This par value with the US dollar will cause more hardship for me and my clients.
I will now get less clients because it will be more expensive for them to buy Canadian dollars to pay me and to pay the Canadian Government. Also they will have to get more local currency as settlement funds, because the settlement funds are measured in Canadian dollars.
People from all third world countries will find it more expensive to migrate to Canada.
Two months ago, G$180=CDN$1, today G$200=CDN$1
At 12 noon news today, the CDN$ is at par with the US$.
www.canadaimmigrationbpa.com
[20-09-2007,15:15]
[**.158.145.205]
Balwant |
(in reply to: Canadaian Dollar Problem)
FOLKS
This will last for a long time. Commodity based as Sharon states is the key.
The US govenment constantly complains about foreign oil when in fact the States buys more energy from Canada then the rest of the world combined.
Fifteen years ago when the electric car which was fast was around the big three oil companies made GM destroy it. Now where is GM LOL
Roy
www.cvimmigration.com
[21-09-2007,00:10]
[**.55.219.202]
Roy |
(in reply to: Canadaian Dollar Problem)
True, still we buy gas for less in the US.
Will that be changed with this regard? Don´t think so....
[21-09-2007,00:47]
[**.230.65.222]
Departed_Canadian |
(in reply to: Canadaian Dollar Problem)
that is because we tax our gas to pay for public transit, etc. now that the dollar is par, it will be interesting to see what happens to the price at the pump on both sides of the border.
News tonight figures we will settle in at 85 cents.
[21-09-2007,01:21]
[***.121.220.199]
sharon |
