Has the CDN dollar been affecting you?
Jan 28, 2004, 5:12 pm
#61
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I'm no expert, but from everything I heard in recent years the US $ was over-valued, thus the devaluation of the US $ and the relative strengthening of the C $ was inevitable. So, the question I need to ask myself is why did I leave so much money in my US $ account?
On a related note, what do you all think of the fact that the Chinese are sitting on so much US cash? As I said, I'm no expert, but it seems to me that this gives them a lot of power!
On a related note, what do you all think of the fact that the Chinese are sitting on so much US cash? As I said, I'm no expert, but it seems to me that this gives them a lot of power!
Jan 29, 2004, 1:18 am
#62
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Interesting to see this thread come back.
We partially adjusted by finding new suppliers in the US. This caused the odd situation of wanting the C$ to go down one day but up the next depending on our contracts for the day. It's really messy and with the volatility we're seeing every day now its hard to set up a proper hedging program.
We partially adjusted by finding new suppliers in the US. This caused the odd situation of wanting the C$ to go down one day but up the next depending on our contracts for the day. It's really messy and with the volatility we're seeing every day now its hard to set up a proper hedging program.
Jan 29, 2004, 1:56 am
#63
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by dbyyz:
On a related note, what do you all think of the fact that the Chinese are sitting on so much US cash? As I said, I'm no expert, but it seems to me that this gives them a lot of power! </font>
On a related note, what do you all think of the fact that the Chinese are sitting on so much US cash? As I said, I'm no expert, but it seems to me that this gives them a lot of power! </font>
Sep 28, 2004, 2:27 pm
#64
Join Date: Jun 2002
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This is the thread I was looking for (before resurrecting airbus320's thread 
)
The Canadian dollar is going crazy, sort of like Tie Domi when he thinks he is a goal scorer
I had posted previously that my distributor had been pocketing the difference but I am pleased to say that with the really strong CDN $ they have have been rolling some prices back or using it to offset any price increases that are being issued from US companies. How this will transfer at the retail level I have no idea but it's a step in the right direction.
Anyone else have any experiences they care to share?
)The Canadian dollar is going crazy, sort of like Tie Domi when he thinks he is a goal scorer
I had posted previously that my distributor had been pocketing the difference but I am pleased to say that with the really strong CDN $ they have have been rolling some prices back or using it to offset any price increases that are being issued from US companies. How this will transfer at the retail level I have no idea but it's a step in the right direction.
Anyone else have any experiences they care to share?
Sep 28, 2004, 3:01 pm
#67
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Imagine in any other country if the currency was collapsing like the US$ is, the government would be turfed out. But I have narry heard a word on the US networks about the US$ being collapsing by almost 25% in a year. Just the high price of oil, at least half of which is due to this devalution.
However, the C$ has also strengthened against most other currencies, so we must face the fact that our economy is seen to be stronger than most. Last May the A$ was almost on par with ours, today theirs is down to 90-cents.
I was hit by currency exchange rates between the Euro and C$ when my Amex account was dinged by several thousand dollars of unauthorized charges. Amex has now picked up the difference, but it started to add up as the C$ improved against the Euro.
I do few transactions in US$, so the decline has not affected me directly. But other currencies have also been rising, a few more than the C$. My South African project has seen a conversion rate move from C$1 = 6 Rand to C$ = 5 Rand, so losing 17% in buying power is impacting that one.
But as BB has noted, it is making our travel down to the US much cheaper. And it is better to have to multiply by 1.3 than 1.5 to roughly estimate what something really costs down there.
However, the C$ has also strengthened against most other currencies, so we must face the fact that our economy is seen to be stronger than most. Last May the A$ was almost on par with ours, today theirs is down to 90-cents.
I was hit by currency exchange rates between the Euro and C$ when my Amex account was dinged by several thousand dollars of unauthorized charges. Amex has now picked up the difference, but it started to add up as the C$ improved against the Euro.
I do few transactions in US$, so the decline has not affected me directly. But other currencies have also been rising, a few more than the C$. My South African project has seen a conversion rate move from C$1 = 6 Rand to C$ = 5 Rand, so losing 17% in buying power is impacting that one.
But as BB has noted, it is making our travel down to the US much cheaper. And it is better to have to multiply by 1.3 than 1.5 to roughly estimate what something really costs down there.
Sep 28, 2004, 3:20 pm
#68
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Remember that the US $ is the currency of choice in much of the world. China is the largest single holder of US currency since it is forced to buy to maintain the exchange rate between its currency & the $US. So long as the world continues to value things in terms of the $US dollar, the United States has virtually an unlimited line of credit & can support its deficits by borrowing more & more.
Sep 28, 2004, 3:32 pm
#69
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I run a consulting business primarily directed at US clientele - almost a pure export business.
We quote and invoice our projects in $US and our expenses are all in C$. Thus, the strong Canadian currency relative to the US has a direct, tangible and major impact on both my Revenue and Margin numbers.
We quote and invoice our projects in $US and our expenses are all in C$. Thus, the strong Canadian currency relative to the US has a direct, tangible and major impact on both my Revenue and Margin numbers.
Sep 28, 2004, 3:52 pm
#71
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Personally, I do feel the difference when I travel to the US - in terms of decreased costs (as measured against the Canadian dollar). However, I do not appreciate any lowering of AC's/other airlines transborder ticket fares (as compared to one to two years ago) - as quoted in Canadian dollars - possibly because of increased oil and other costs to the airlines have negated any savings Canadians would have experienced during this time.
Sep 28, 2004, 4:05 pm
#72
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Funny and a little sad to see this thread revived.
Our suppliers have not adjusted their prices accordingly and the high flying C$ is a major disaster for us. It went on a good downward run 2 months ago but is right back to its 10 year highs.
I don't think anyone can justify it going too much higher as one of the major reasons for its rise is the because of US$ negativity. The fact remains that the Canadian economy is but a microcosim of the US's and a slowdown in the US will have to hurt Canada and thus C$. Such issues as Canada being a net exporter of oil and the Bank of Canada's way too hawkish stance is what's really causing this.
Things will be interesting the next couple of months with the US elections and lots of important data being released.
Our suppliers have not adjusted their prices accordingly and the high flying C$ is a major disaster for us. It went on a good downward run 2 months ago but is right back to its 10 year highs.
I don't think anyone can justify it going too much higher as one of the major reasons for its rise is the because of US$ negativity. The fact remains that the Canadian economy is but a microcosim of the US's and a slowdown in the US will have to hurt Canada and thus C$. Such issues as Canada being a net exporter of oil and the Bank of Canada's way too hawkish stance is what's really causing this.
Things will be interesting the next couple of months with the US elections and lots of important data being released.
Sep 28, 2004, 6:11 pm
#73
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Originally Posted by Youponder
Funny and a little sad to see this thread revived.
Our suppliers have not adjusted their prices accordingly and the high flying C$ is a major disaster for us. It went on a good downward run 2 months ago but is right back to its 10 year highs.
I don't think anyone can justify it going too much higher as one of the major reasons for its rise is the because of US$ negativity. The fact remains that the Canadian economy is but a microcosim of the US's and a slowdown in the US will have to hurt Canada and thus C$. Such issues as Canada being a net exporter of oil and the Bank of Canada's way too hawkish stance is what's really causing this.
Things will be interesting the next couple of months with the US elections and lots of important data being released.
Our suppliers have not adjusted their prices accordingly and the high flying C$ is a major disaster for us. It went on a good downward run 2 months ago but is right back to its 10 year highs.
I don't think anyone can justify it going too much higher as one of the major reasons for its rise is the because of US$ negativity. The fact remains that the Canadian economy is but a microcosim of the US's and a slowdown in the US will have to hurt Canada and thus C$. Such issues as Canada being a net exporter of oil and the Bank of Canada's way too hawkish stance is what's really causing this.
Things will be interesting the next couple of months with the US elections and lots of important data being released.
Sep 28, 2004, 6:14 pm
#74
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Originally Posted by B767
I am in the same situation as cattle. I am paid in the US dollars and have watched my paycheck plummet by 18% since the beginning of the year.
On the business side I have been purchasing more product from US factories and less from Canadian factories.
On the business side I have been purchasing more product from US factories and less from Canadian factories.
DF
Sep 28, 2004, 6:21 pm
#75
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mid 80 cent dollar next?
I heard/read somewhere last week that a couple of major bank economists are forecasting a rate of USD 0.83-0.85 by end of next year or something in that frame. The current level was forecasted some 4 years ago but took about 2-3 years to materialise. Apparently high energy prices as well as inflation differentials will drive the loonie up.
True, but a lot of those foresighted enough know this will eventually come to an end. Their timing may all be wrong and it may not even occur in any of our lifetimes but when it does come to and end, it will come very suddenly and dramatically. A classic book by a certain Edward Gibbon may become relevant and contemporary reading soon.
Some who chart gold and oil prices noted that oil and gold appreciated at approximately the same rate and at the same time as the Euro against the USD. Some sign of pricing in other currencies?
So long as the world continues to value things in terms of the $US dollar, the United States has virtually an unlimited line of credit & can support its deficits by borrowing more & more.
Some who chart gold and oil prices noted that oil and gold appreciated at approximately the same rate and at the same time as the Euro against the USD. Some sign of pricing in other currencies?