Hello:
I am from canada. I have some us$ savings. As the US$ is continuously falling. Should I convert my US$ to CDN$ to save me from further loss. When I bought US$ it was 1.45CDN$=1us$.
2007-08-06 06:02:09 · 2 answers · asked by sayedum 2 in Business & Finance ➔ Personal Finance
If you convert the savings now, you are essentially taking the reduction in your gains and monetizing them. By this, I mean you invested in the US$ at CDN1.45 : $1, so you are effectively losing the exchange in real terms. If you keep the investment denominated in USD, the exchange loss has not been realized yet.
But, if you leave the investment in USD, you risk the further decline of the USD. It dependson where you think the risk of further decline in the USD relative to the CDN. Right now, the futures market is estimating that the USD does decline slightly over time (fx futures 2008 AT 1.048 rather 10.53), but for the long term, you never know if the economy will rebound.
2007-08-06 06:12:11 · answer #1 · answered by PK 5 · 0⤊ 0⤋
yes very smart idea
2007-08-06 13:09:54 · answer #2 · answered by paulcondo 7 · 0⤊ 0⤋