Relationship between us dollar and canadian

XE: Convert USD/CAD. United States Dollar to Canada Dollar

relationship between us dollar and canadian

Calculator to convert money in Canadian Dollar (CAD) to and from United States Dollar (USD) using up to date exchange rates. Convert USD to CAD with the TransferWise Currency Converter. Learn more about the various factors that influence CAD-USD exchange rate movements, such as oil prices, economic policy changes in the U.S. and Canada, .

Exchange rates definitely cut both ways. If you have significant exposure to exports or imports, it's never too late to integrate currency strategies into your business plan. To do so, you need to examine your markets and ask questions about the impact of exchange rates.

relationship between us dollar and canadian

To help you plan, here are some strategies for limiting your foreign exchange risk. Structuring your business to offset currency fluctuations With natural hedging or operational hedging, benefits flow naturally from basic business operations and long-term strategies.

Here are some examples: Matching foreign sales and expenses Exporters can create a natural hedge against currency fluctuations by offsetting sales in a foreign currency against expenses in that currency.

In practical terms, this means finding foreign suppliers. Setting up a foreign bank account For a Canadian company selling and buying in U. It allows firms to time their transfers of U. For companies with the required working capital, this is a simple, low-cost strategy.

How to Convert Canadian Money to U.S. Money | USA Today

Adding foreign operations Internationalizing operations can smooth out currency differences, making a company more competitive. Using financial instruments to hedge currency fluctuations Buying and selling currencies using forwards, futures and options is a traditional way to hedge currency fluctuations. Only Quebec separatists used the moment to argue for Canada to adopt the U. In the Western Hemisphere, however, the issue of "dollarization" - simply substituting the American dollar for local currencies - has caught a bit of a tailwind.

relationship between us dollar and canadian

The idea has notably strong support in Argentina and a growing constituency among bankers and businesspeople in Mexico. Argentina pegged its peso to the dollar in the early s as a way to corral a then-soaring inflation rate.

The move has been so successful and popular that outgoing Argentine President Carlos Menem has gone on to advocate unilaterally switching his country over to the dollar.

THE CANADIAN DOLLAR VS THE AMERICAN DOLLAR

The idea has drawn strength from the global financial crisis in developing economies, with some Argentines seeing dollarization as protection from the possibility of currency plunges. Menem has subsequently tempered his enthusiasm, especially after warnings in January from U. But it is that slow slide towards dollarization in the Americas that is cited by Canadian economists Thomas Courchene and Richard Harris in their now-notorious C.

Howe paper calling for Ottawa to negotiate a common currency with Washington. They fear a world in which the rest of the hemisphere gradually adopts the dollar, leaving Canada isolated outside a huge U.

Instead, they argue, Canada should instigate negotiations for a new common currency that would ensure Ottawa has at least some input into continental monetary policy - though they have few ideas on how to tease Washington to join such a discussion.

Economists lined up to take shots at the report's assertion that a dropping Canadian dollar was hurting foreign investment in Canada or dampening trade.

relationship between us dollar and canadian

Critics also quarrelled with the report's assertion that without pre-emptive action dollarization is inevitable for Canada.

Those countries eager to use the American dollar "had lousy monetary policies, utter lack of confidence in their domestic currencies, high interest rates, and their people got fed up," former Bank of Canada governor John Crow told Maclean's. You can't argue that for Canada. Finance Minister Martin has, along with British Chancellor of the Exchequer Gordon Brown, become one of the loudest voices calling for new international financial structures to protect the global system from meltdown.

In Ottawa, part of that review has included quietly looking at dollarization and other options for the Canadian currency. Last summer's dead drop in the Canadian dollar to record lows - far below any level finance officials thought reflected its true value - jolted Ottawa into looking at all other options.

Coping with a fluctuating Canadian dollar

Business groups have also examined the common currency, though they, too, want to keep the political temperature low. Maclean's has learned that the Business Council on National Issues studied dollarization in depth over the past six months and concluded the debate itself was not worth the traumatic clash it would provoke with economic nationalists.

Not that the Canadian business community is united. There are businessmen like Wolf Haessler, president of Guelph, Ont. More than 90 per cent of Skyjack's construction platforms are destined for export - Haessler says he prefers "to have everything as predictable as possible and a common currency gives us that. But the BCNI discovered most of its members oppose a single currency. And while they are more receptive to the idea of a customs union under which Canada and the United States would set a common tariff policy, what business leaders really want to talk about is the urgency of harmonizing Canada's tax levels with the United States - in other words, lowering them.

Ottawa has become unsettled in recent months over the rising number of disagreements with Washington, from trade disputes over magazines, fish and lumber to assertions by the Americans that it is too easy for sensitive Canadian technology to fall into the hands of rogue states or groups.

Canada's sometimes casual approach to security issues unnerves Washington - one reason why U. My greatest fear is one committed in the United States where the guy got into the States from Canada.

We should look at how do we defend what we've got now, not how do we give things away.

relationship between us dollar and canadian

You lose control of your policy-making. It is not just economics - it has to be politics as well, the notion of Canadian independence.