Author Topic: Moving $CDN into a $US account (Read 1792 times)

Ex-airbalancer · « **on:** February 27, 2011, 09:19:47 am »

With the CDN$ at $1.02 US is anyone moving money into a US account.
Since at a $1.02 that is about the break even after cost
We have move a little bit but was thinking over moving more over

tpl · « **Reply #1 on:** February 27, 2011, 11:00:23 am »

Are you thinking of moving then?

or do you expect the $CDN to drop in value soon?

Ex-airbalancer · « **Reply #2 on:** February 27, 2011, 11:05:41 am »

Quote from: tpl on February 27, 2011, 11:00:23 am

Are you thinking of moving then?

or do you expect the $CDN to drop in value soon?

not moving
I think our $ will not raise much more and there more of a chance it dropping again

sailor723 · « **Reply #3 on:** February 27, 2011, 11:20:33 am »

I don't know,when you look at the new world economy, (BRIC countries growth/demand for resources etc etc) having the "petro-loonie" trading at a premium to the US dollar may be the new normal. $:-\$

Dexer · « **Reply #4 on:** February 27, 2011, 12:22:29 pm »

I think this depends on your real requirements for the U.S. dollar account.

I have an "old" U.S. dollar account that I rarely use anymore. I set it up years ago when many of my cross-border mail order purchases were paid for with money orders and the account made that easier. I also used to receive stock dividend payments from a foreign company that were issued in U.S. dollars so having that account made it easy to deposit the cheques. I could deposit U.S. dollar cheques and get U.S. dollar money orders with no additional fees.

These days, the internet and Pay Pal have ended the days when I sent money orders. And that foreign company no longer issues dividends in U.S. dollars. I still have the account but it doesn't see much use.

If you have some real use for such an account, then this is as good a time as any to move your Canadian dollars into a U.S. account.

If, on the other hand, you view this as a chance to make some money on the exchange rate (sort of small time arbitrage), I wouldn't bother. The change in exchange rates is likely to be very slow and not significant over the short to medium term. There are relatively safe ways to earn 4% to 8% returns over the course of a year and I don't see the dollar moving more that a few points one way or the other.

Short answer: Good time to move into a U.S dollar account if you will USE a U.S. dollar account...but not worth it if you view it as an investment strategy.

mmret · « **Reply #5 on:** February 27, 2011, 06:44:19 pm »

I don't understand why people get all worked up about parity for. Why not at 1.03, or 1.05...

rrocket · « **Reply #6 on:** February 27, 2011, 06:45:53 pm »

Quote from: sailor723 on February 27, 2011, 11:20:33 am

I don't know,when you look at the new world economy, (BRIC countries growth/demand for resources etc etc) having the "petro-loonie" trading at a premium to the US dollar may be the new normal. $:-\$

I agree. Loonie should be at parity or stronger for awhile. Particularly if the US just keeps printing more US dollars..

ArticSteve · « **Reply #7 on:** February 27, 2011, 10:04:25 pm »

not moving
I think our $ will not raise much more and there more of a chance it dropping again

I agree.

I've lived thru a low Canadian $$$ while traveling in the States too many times over the past decades and would very much like to sock some US traveling cash away for the next decade.

The FEDS are totally out of control on deficit spending @ 45 BILLION and Ontario is spending 20 Billion more than it can take in. Taxes on all levels are at their ceiling politically so I believe that the Canadian $$$ is gonna crash and burn soon despite oil prices.

The United States has the taxing capacity left to rectify their fiscal imbalance rather rapidly if they are finally forced to confront it. Canada does not. Our "recession" is permanent. There will be no magical growth in tax revenue mitigate our soaring debt.

Does anyone know of an entity that offers a fair exchange rate?

saint_satan · « **Reply #8 on:** February 27, 2011, 10:36:18 pm »

I often wondered if buying US money market funds would be a good way to "play" curency. Buy the funds in a TFSA and sell later when you want the dough. Money changers are thieves.

Dexer · « **Reply #9 on:** February 28, 2011, 12:39:48 am »

I don't really want to drag this too far off topic but I think anybody looking to "play" currency is making their lives more complicated than necessary. There's a big element of "crap shoot" involved and you'd either need a very big move or a boat load of money to make it worthwhile. This isn't really wise investing for little guys.

I just opened up a browser window and went to check my Canadian equity mutual fund. I haven't really paid too much attention to it in the last while. It's up almost 12% for the six months ending in January. Furthermore, for the 30 day period ending on February 25 (final tabulation for the close of business on Friday) it's up a freakish 7.65%. OK 7.65% in a month is obviously a lucky streak but you get my drift. A well-diversified Canadian Equity mutual fund has been good for about 20% in the last year.

People looking to make money playing the exchange rates are taking a very risky and complicated route that is likely to lead to underperforming returns.

I realize that articsteve knows we Canadians are in a permanent recession...but the return on my Canadian equity fund for the month of February alone completely covered the cost of my new 60" Quattron TV...with enough left over to buy ANOTHER 60" Quattron! And, yes, I actually did pay for it by redeeming mutual fund units.

But, if folks think they can guess the direction of the Canadian dollar...and hope it drops to $.80 U.S. in the next year (to match the return of equities in the previous year)...best of luck to you.

ktm525 · « **Reply #10 on:** February 28, 2011, 04:58:20 pm »

Quote from: articsteve on February 27, 2011, 10:04:25 pm

not moving
I think our $ will not raise much more and there more of a chance it dropping again

I agree.

I've lived thru a low Canadian $$$ while traveling in the States too many times over the past decades and would very much like to sock some US traveling cash away for the next decade.

The FEDS are totally out of control on deficit spending @ 45 BILLION and Ontario is spending 20 Billion more than it can take in. Taxes on all levels are at their ceiling politically so I believe that the Canadian $$$ is gonna crash and burn soon despite oil prices.

The United States has the taxing capacity left to rectify their fiscal imbalance rather rapidly if they are finally forced to confront it. Canada does not. Our "recession" is permanent. There will be no magical growth in tax revenue mitigate our soaring debt.

Does anyone know of an entity that offers a fair exchange rate?

My trading platform (RBC) adds less than 1%

BTW: Canda debt/GDP ratio is 38% United States is 59%. Japan is 196%

ktm525 · « **Reply #11 on:** February 28, 2011, 05:00:33 pm »

Quote from: articsteve on February 27, 2011, 10:04:25 pm

not moving
I think our $ will not raise much more and there more of a chance it dropping again

I agree.

I've lived thru a low Canadian $$$ while traveling in the States too many times over the past decades and would very much like to sock some US traveling cash away for the next decade.

The FEDS are totally out of control on deficit spending @ 45 BILLION and Ontario is spending 20 Billion more than it can take in. Taxes on all levels are at their ceiling politically so I believe that the Canadian $$$ is gonna crash and burn soon despite oil prices.

The United States has the taxing capacity left to rectify their fiscal imbalance rather rapidly if they are finally forced to confront it. Canada does not. Our "recession" is permanent. There will be no magical growth in tax revenue mitigate our soaring debt.

Does anyone know of an entity that offers a fair exchange rate?

I dare you to short the Canadian dollar.

dash · « **Reply #12 on:** February 28, 2011, 05:26:49 pm »

Most of our purchases are in US $$, from my experience all I can say is, the dollar is so volatile, it’s a crap shoot, our hedging policy is to hedge 3-4 months in advance and that’s it. I’ve been to seminars where some ‘experts’ are forecasting Cdn$ to go as high as 1.05 by early summer, and again some other ‘expert’ says our dollar is really worth 0.85.
I don’t think the dollar will go higher than 1.05 as our Bank of Canada Governor and Flaherty will start talking down our dollar. My view is short term we will see a stronger dollar, but will probably weaken by end of the year and go below parity.

safristi · « **Reply #13 on:** February 28, 2011, 08:37:55 pm »

...I'm just doing a lil quantitative easing on the QE2

...................cruising for a bruising swimming with the dollar sharks......

mmret · « **Reply #14 on:** March 02, 2011, 07:56:04 pm »

Quote from: articsteve on February 27, 2011, 10:04:25 pm

Does anyone know of an entity that offers a fair exchange rate?

PM

rrocket · « **Reply #15 on:** March 02, 2011, 07:59:45 pm »

Quote from: mmret on March 02, 2011, 07:56:04 pm

Quote from: articsteve on February 27, 2011, 10:04:25 pm
Does anyone know of an entity that offers a fair exchange rate?

PM

www.xe.com

dash · « **Reply #16 on:** March 03, 2011, 10:52:35 am »

I concur with RR, I use that site also and you my try www.DailyFx.com

or are asking where to exchange $$?

huota · « **Reply #17 on:** March 03, 2011, 11:20:18 am »

Quote from: dash on March 03, 2011, 10:52:35 am

I concur with RR, I use that site also and you my try www.DailyFx.com

or are asking where to exchange $$?

That can be done through xe.com as well.

Ex-airbalancer · « **Reply #18 on:** March 06, 2011, 03:26:36 pm »

Clean out my office
Came across a bill from May of 09. One US$ was = to 1.21 CDN with using a Visa card

Dexer · « **Reply #19 on:** March 06, 2011, 04:50:49 pm »

I remember in the early 1980's when our buck was worth in the mid 60 cent range.

It would cost you about $1.50CDN to buy a U.S. dollar.