Forum Moderators: martinibuster
For every US $10,000 we would get CDN $10,000 and lose another CDN $1000 to CDN $1,500 that we were getting in the past with better exchange rate.
Strong Canadian dollar is - in my opinion - disaster for Canadian economy; hence disaster for Canadian Adsense publishers who earn living thanks to US online companies.
Another option is to get the payments in USD into a US account in a Canadian bank. Then, whenever the CDN dollar falls for a day or so, transfer the $ to your CDN account.
Another option is to get the payments in USD into a US account in a Canadian bank.
Wait a minute, now that will work. Cheques are sent in US funds.
I understand your concern, though. I live in the U.S. but earn a good deal of my income in euros, and if the euro were to drop back to the levels of 2000 and 2001, I'd be hurting.
Checks do expire
Does this sound plausible?
Or, given the current sharp CDN $ growth, maybe the future is still bleak? Will CDN economy stay this strong for years to come or what? Can anybody give predictions? I don't feel comfortable with this exchange rate. I am expecting a big check next month, and given the fact that CDN $ is the highest since 1978, I will lose lots of money... I might switch to check, but then I would lose interest... honestly, this is ridicoulous.
I was thinking, maybe it would be wise to get checks in USD funds, and then keep US $ funds for a year or two hopping that Canadian dollar will fall sharply, and then sell and make 20-30% profit.Does this sound plausible?
No, a high Canadian dollar is DEFINITELY here to stay longer than that. We've got oil, and other natural resources which are really spiking our economy. And thanks to the war in Iraq and other US spending, they are in absolutely incredible debt right now, truly scary stuff. Pretty much our economy has to tank before our dollar will drop against the "US Peso" as some wags have been calling it. And there's nothing in the immediate future that can cause that.
(On the upside, my Energy Funds RRSP and Precious Metal's funds are kicking ass.)
I'm basically preparing for a CDN - US dollar parity in my future plans. Sucks, given how low the dollar was just 2 years back when we started all this. But that's how it is.
I still can't believe a *Republican* gov't caused all this US debt. And although I wasn't crazy about it, I think our Conservative gov't actually came out with a budget that will be good for our economy - and hence bad for us.
But look to take advantage of it if you can - hire out US employees, as they are cheaper than ever and there's 10x of them. Same with other US services and software!
The U.S. has now become far and away the largest debtor nation in the world and is fully dependent on foreigners to fund its huge trade and fiscal deficits. This process is placing huge pressure on the American dollar. The mismanagement of the economy by the current administration has been well documented.
On the other hand, the Canadian economy is in very good shape at the moment. The federal government and virtually every provincial government is running a surplus. I know that Alberta is running almost a $10 billion dollar annual surplus. We are experiencing a commodities export boom of major proportions, and it seems unlikely that it will end anytime soon. The worst danger would be if the U.S. economy collapses.
At any rate, there does not seem to be anything in the cards to suggest that the Canadian dollar is going to fall in value. I am preparing for the possibility that the Canadian dollar will approach parity with the U.S. dollar. As Canadian publishers, there is really very little we can do about it. Most of our living costs and expenses must be paid for in Canadian dollars.
Most of our living costs and expenses must be paid for in Canadian dollars
Unless you get USD cheques and put them into a US account, and then withdraw the money and pay for goods and services in USD. Merchants will still give you approximately 2 cents more then the banks will. The banks always gouge 2 cents off the top just to convert the $ for you.
The only thing that could cause the CDN dollar to waiver is if there is a failing of the government in the next while. But it hardly looks like the opposition has the war chest for another election soon.
I'm basically preparing for a CDN - US dollar parity in my future plans.
Interestingly enough, the Google straight to the bank EFT gives us a better transfer rate than we got putting the cheques in the bank. I don't understand the magic behind that but I don't complain.
Good point about the gov't being weak... but really, for all their bluster the Liberals don't stand a hope in heck right now of toppling the gov't, they'd get killed if we had another election campaign and the game would be up for them for at least 5 years. So I think out gov't will be strong for at least a year and half - in a year they'll have a leader and then it will take at least six months to get his/her feet wet and judge the public opinion.
Even if the gov't "falls" in that time, I don't see the dollar drop that significantly if the economy continues to boom. Does anyone else here?
As an all time Liberal, I am sick of both Liberals and Conservatives. We need a third system that will be fair and balanced to all. The budget is good, but not great (for example additional $450 million given to Natives is a waste of money. They already have 6-8 billion dollars that we gave them, and they are still unemployed and complaining; none of their problems seem to be solved + they don't pay taxes). When it comes to Google and Adsense - they can do nothing about CDN/US exchange rates; they can't control it. Canadian economy is trully a world superpower now, it's rising sharply and there is no sight of slow down in the near future. This is hurting Canadian publishers who do business with the US. If you ask me, I would rather be paid $150 CDN for ever $100 US, than $110 CDN for every $100 US. If CAD $ gets to parity with US $, then we are really screwed; we will be losing tons of money. But again, best thing to do is: No Complaining.
(Maybe the CDN dollar can keep better parity with the EU than the USD.)
great question.
Maybe we could, why not? However, I have no faith in European Union. They do business differently over there.
Maybe it would be better for US and Canada to have 1 currency; North American currency?
Let's call it AMERO.
What do you think?
As for the risk in general, I guess you would be more protected from currency fluctuations and economic downturns if your site had a truly international focus. That's not to say you would necessarily earn MORE overall, but having lots of visitors and lots of advertisers from all over the world would smooth out many of the daily/seasonal/regional peaks and valleys.
I still cry the blues when it's time to pay myself, though. It's not nearly as much fun to exchange US dollars as it was two or three years ago.
As for the risk in general, I guess you would be more protected from currency fluctuations and economic downturns if your site had a truly international focus. That's not to say you would necessarily earn MORE overall, but having lots of visitors and lots of advertisers from all over the world would smooth out many of the daily/seasonal/regional peaks and valleys.
My site has a trully international focus. The topic of my site is foreign exchange (currency exchange) and day trading. People all over the world do it; it has trully international appeal.
Back in 2001 the Canadian dollar hit alltime lows at 62 cents. $1000 U.S was $1600 Canadian.
Guess we won't be seeing that for some time.
