Canadian Dollar Continues to Rise

[bjarvis]

At the moment, I see the Canadian dollar hitting $0.9024. I believe that's the highest its been since 1977. It's making our May trip to Vancouver a little more expensive but I'm more worried about what the valuation will do to Canadian exports and thus to the rest of the economy.

Only a couple of years ago, many were jokingly calling it the Canadian peso...

Comments

[dr-scott.livejournal.com]

When the world values Canadian resources in the ground highly, as now, the currency rises. This tends to crush non-extractive export industries. In many ways, being resource-rish is a curse, unless of course you happen to be an owner of those resources, or work in the that industry.

[bjarvis.livejournal.com]

It doesn't help that the Congress doesn't seem to have the will to fix the US' ugly deficits, both trade & budget. With the finances so out of kilter, the US dollar has rightfully slid, exaggerating the rise of the $ CDN.

I hereby volunteer to be W's budget director. They could do worse.

[moofedct.livejournal.com]

I found the article "What's behind the rise of the Canadian dollar?" an interesting read.

As for your trip, yeah it'll be more expensive and it'll be worth it. :)

[bjarvis.livejournal.com]

I'm looking forward to it... I haven't been back to Canada in almost two years so I'm in withdrawal. :-)

[moofedct.livejournal.com]

Well with a job as fabulous and low-stress as yours, I don't know that I'd want to go back either. /snicker

[bjarvis.livejournal.com]

The next photo of me will likely be one of me grasping a lamp post on the Canadian side of the border with Kent pulling me by my feet towards the US. :-^

[moofedct.livejournal.com]

/snicker /snicker /snicker

You mean you won't be dying to get back to your job???

[madknits.livejournal.com]

Any trip to visit our neighbours in the Great White North is worth it, no matter how expensive.

Besides, if the Canadian dollar goes up, the CanCub may come for another visit!

[bjarvis.livejournal.com]

Yeah, it will definitely be cheaper for Canadians to come south... I'm hoping this might increase the Canadian content at various conventions and festivals in the near future but I fear that the ongoing US state of national lockdown will continue to keep most sane people away. The pending passport demands on US travellers will likely badly hurt travel to Canada, not to mention trade across the border.

[pectopah.livejournal.com]

Then of course, there are Americans like me who have very bad timing. Most of our income comes from US sources still (we are working on getting Canadian sources), so our budget is a little kablooey at the moment.

The news is full of analysis the upshot of which is: Alberta will continue to suck in money and labour from the rest of Canada. Ontario and Quebec, which produce most of Canada's manufactured exports, may get hit hard.

[bjarvis.livejournal.com]

Sounds familiar... in preparation for our upcoming Vancouver trip, I had been sending US funds earlier this year into my TD Canada Trust account. I noticed the last round in February distinctly didn't convert into anywhere near as many loonies as prior transfers. At least most of the upcoming trip is now either prepaid or will be financed out of existing Canadian dollars.

In prior years, when I was helping out my family, the difference in the exchange rate helped cushion the pain on my end; now that the dollars are approaching par, future assistance will definitely pinch.

Good luck in getting Canadian sources of revenue in place asap!

[beartalon.livejournal.com]

It's personally killing me in interest rates on variable rate debts.

[bjarvis.livejournal.com]

Ouch. I know interest rates have been gradually moving upwards but I've only tracked the bank rate: I've lost track of how quickly more personal items like loans & credit cards have risen, or how high.

If my parents knew what the words "interest rate," "variable rate" and "debt" meant, I'm sure they'd feel the pain a bit more acutely too. Ignorance seems to be bliss. :-^

[moofedct.livejournal.com]

Hey since you're doling out money, can you spread a little of the love to the west coast?

[bjarvis.livejournal.com]

Love, yes. Money, not so much... :-)

[moofedct.livejournal.com]

Well only one can buy the other (at least temporarily.)

I know which one I'd rather have.