Canadian Dollar: Good or Bad?
I’m sure you’ve noticed the Canadian Dollar passing the “all mighty” USD in the past week or so, but as a Canadian, there are mixed emotions for me.
Big Deal
First, is the USD really all that strong now? It’s all in what you compare it to, but I don’t think the CAD has made any great strides, it’s just steadily going up as per usual of a growing economy, and the USD is coming down. It’s definitely a push/pull deal.
I’m no economist, but I hope the CAD either plateaus or drops, or the USD takes back some huge ground.
But Why? You’re Canadian!
That may be, but I charge in USD. I’m not going to be evil and start charging in CAD now for no reason, because USD to me is a more universal currency. People may be native to the pound, but (in PayPal, hypothetically) they still have USD for paying for services (were talking online).
The USD is pretty much always either your main currency or your secondary, I’ve found. My PayPal balance remains in USD until I convert it (and get killed on the rate by PayPal) and send it to my bank account in CAD. Paying your designer, coder, or whatever, is usually done in USD, am I not right?
Prices Haven’t Moved
So why, even with the CAD being slightly more (it gets up there with higher amounts of money, though) valued than the USD, do I pay $299 USD for an iPod, but if I want to buy it in Canada, it’s $320. I’m not asking for dead straight equality, where you’d pay exactly $295 CAD, but similar prices would be greatly appreciated.
This point seems to be missing something, like extra shipping costs or manufacturing costs, but not only is shipping added to that afterwards, but you’re telling me because you can’t manufacture in Canada, I have to pay more? The free shipping things usually have seems to get added to the price there or something.
Is Canada Thriving?
I don’t how you can tell if an economy is thriving or not from a day to day basis. Over time, seeing more exports for more money would be a sign, I would think, as well as less imports maybe, but Canada can be/is a pretty self reliant country. Lumber and oil are in stock, slightly less on the latter, but that doesn’t matter anyways because gas prices are still huge here.
This goes back to my point, we’re just doing all around very well up here, living in out igloos and wearing our red plaid jackets and orange toques- nothing out of the ordinary. The USD kind of came back to us, with their dollar not being worth as much, it would political reasons, no doubt.
So from any Canadian readers (I know you’re out there, a bunch of you), or American readers, has this effected you at all? I know there are companies in the same position as I am, dealing with USD that isn’t worth a huge margin more any longer. And if any one could tell me if I can buy stuff from the (online) American Apple store and still have it shipped here, that’d be great.
Leave a comment
Marky
October 10th, 2007 at 8:35 PM
I also use USD. Mostly because most of the people I work for are american and like to use that money. I however am British. As much as I like the pound everyone online likes to use USD.
Adam M
October 10th, 2007 at 8:42 PM
For me it doesn’t really matter. Stuff on ebay is cheaper and it’s cheaper to go on holidays.
I know a lot of people that are loosing their jobs over the dollar being high. I have a friend who manufactured car parts and most of their sales went to the states. He was worried when the Canadian dollar was at $0.85CAD = $1USD so I can’t even imagine how much it’s hurting now.
I was talking to one of my economic profs and he said that the dollar would plateau and then go back down below the dollar like the past.
Mike
October 10th, 2007 at 9:08 PM
Sure the dollar is up Connor, which makes it great to go down to the states to buy stuff and to go on vaccations. I was recently in Hollywood, CA and with our dollar on par it wasnt to bad. Some stuff is priced the same some stuff is way cheaper.
Anyways what I want to say is if your worried you are not making enough money to cover the rate of the dollar changing just charge the $10 or $15 difference that there could be. If people really want good work they will pay it.
You might be thinking if I charge $10-15 more I wont be competitive well if someone wants quality work they will pay it and if not it weeds out the garbage jobs anyways.
Another thing you can do is say your prefer to get paid CAN but if that is not possible the USD is fine. If people in other countrys are willing to convert to the USD I am sure they are willing to convert to the CAD as its pretty much the same thing, your not going to get charged anymore in conversion fees.
However the google checks I recieved 3 years ago were nice because our dollar was low like .65 - .70ish range which made for awesome checks once they were converted to CAD
MrCorey
October 11th, 2007 at 11:00 AM
I should comment more, instead of lurking in my reader. I do like the Ebay purchases costing me less. As far as the rest of my life, it hasn’t really affected it too much. It is true that many jobs have gone elsewhere, due to the increase cost to the American owners, but overall, the employment rate in the country has gone to a low that hasn’t been seen in over 30 years. There are other sectors that are thriving.
I like the idea that we have to get off our duffs and stop relying on getting paid by Americans and branching out. As a country, we’ve largely ingored the Pacific Rim as a market, as the US is so close to us. Perhaps this will make Canada a more global trader. Maybe not.
Ryan
October 11th, 2007 at 4:25 PM
Yup, I get paid in USD as well. It was a bummer when I logged in to PayPal to see that I suddenly had less Loonies than I did Washingtons. The next day it was all over the news.
Nathan
October 12th, 2007 at 2:22 AM
I have never worked or paid in CAD. I generally use USD (being British) because I feel it is used more than GBP and people have a more general understanding of it.
Owen
October 12th, 2007 at 12:46 PM
Your picture at the top is of British five pences not quarters :p
Everyday Weekender
October 12th, 2007 at 5:35 PM
i don’t know.. I think its great for shopping but no so great for local businesses
Everyday Weekender
October 12th, 2007 at 5:36 PM
…your also right, if you get paid in USD and have to convert to CAD then you’re getting bummed
Henry
October 13th, 2007 at 9:15 AM
I charge GPB when i can but if not then USD does the job
Connor Wilson
October 13th, 2007 at 4:08 PM
The vacation thing and eBay prices do seem to be the biggest factors for most people now. American eBay sellers that have had items listed for a couple weeks or so must be pissed now
I think I’ve come to terms with things by now
Acopic Web Design
October 15th, 2007 at 5:22 AM
Yeah - USD can be a pain when your own currency is a lot stronger. I’m in England so the GBP exchange is like 2+ USD - so $300 = less than £150 - which is crap. I know where you’re coming from…
Razor
October 16th, 2007 at 3:31 PM
Hey connor, nice blog an all but cmon, give us a new post plz lol
i no you was gonna cut back n all but 6 days?? bit eccessive dont ya think
Connor Wilson
October 16th, 2007 at 7:00 PM
I have no plans on cutting back, I’ve just been busy. Plus, what would you rather have, a new design or a new post?
Razor
October 17th, 2007 at 7:43 PM
quality content over quality presentation imo, if i wanted glossy looks, id buy a magazine
Mike
October 18th, 2007 at 7:50 PM
Probably a new post
Jamie
October 19th, 2007 at 4:29 AM
@ Mike
I kinda agree :d
Adam M
October 19th, 2007 at 9:24 AM
I’d have to agree with everyone above. New post over new a layout
Henry
November 1st, 2007 at 8:55 AM
I agree !
kayla
November 14th, 2007 at 12:04 PM
ok i see some ppl are talkin abot CAD USD well i dont know about that stuff but can someone tell me how much £120-£160 is in canadian dollars haha
High Gas Prices
May 11th, 2008 at 6:13 PM
What has happened to the US dollar is indeed quite tragic!
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