How has the rising Canadian dollar affected your purchasing habits?

Question

Loonie shoots for parity with the US Dollar
http://ca.news.finance.yahoo.com/s/18092007/2/biz-finance-loonie-shoots-parity-u-s-fed-rate-cut.html

What's the loonie worth right now?
http://ca.finance.yahoo.com/q?s=CADUSD=X

Answer 1

The Canadian dollar has about as much purchasing power as the US Dollar. Bah! The Federal Reserve Note (US dollar) has lost 96% of its purchasing power since 1913.

Answer 2

I live in Windsor right across from Detroit Michigan and I noticed a common theme in everyones statement. They going to the U.S. to make purchases! If you look at the big picture how does that help our economy? Spending money in another country does nothing for our dollar.
No companies are banging down our doors with job offers. When the loonie was at a low rate Americans came over here and spent money and thus helped our economy by providing jobs mostly in the hospitality industry. Now that the dollar has risen Americans come here less. Therefore folks are getting laidoff here in Canada.
Sure the loonie looks great since it's reached parity with the dollar, but it really does nothing to help our economy when everyone is spending that loonie in another country instead of here at home.

Answer 3

It won't effect mine nor many other peoples spending habits much as the wholesale prices of items coming in from abroad have not reflected our higher valued dollar. In fact prices keep rising at break neck speed. Look at the autos, books, software and millions of other things that are roughly 33% to 100% higher here then outside of the boarder. The only people benifiting from the higher dollar, is people buying stocks, money, furtures markets and the fourth greediest govenment on Earth. If the dollar reflected the TRUE value of items one can buy with it on our own soil, it would be grand for all, but the fact is it doesn't. It only helps the money markets. The cost of lets say, a VW from Germany or a CPU from the USA is higher today than three years ago, all due to over billing from the our nations tax greed and those of other nations demanding more to conpansate for their lower valued money. Maybe they should be talking about the unit value system not dollars like economists do.
Personally for me I spend as little supporting the world's largest terrorist group, the Republic of the United States of America, like the majority of Earth has been doing for some time now. That is why their economy is in the toilet, a clear indication of how the world veiws them now.
Most people won't travel south of the boarder anymore with all the schizophrenic boarder controls simular to the Soviet Union of the Stalin cold war days. It's pretty clear the US has declared every nation but the UK and Austrailia an enemy of them by how we are all treated. I used to travel there lots but not in the last few years as they clearly make it a huge herdle to enter, buy things and leave. I visit europe now instead and most coutries there only take the euro or local money and the banks charge so much to convert that all the gains really do go out the window. Don't get me wrong the return is better but when the banks are ONLY GIVEN 4 cents to 10 cents less of the claimed value on every dollar exchanged given you the true reflection then it's no great whoop dee doo.
The truth be know it's the American dollar and the Euro loosing value not the Canadian dollar making much gain as the pound sterling (averages 2.00 to 2.50 through out the year for 30 years now), the yen and most other currencies are all about the same with in the last 3 years.
Not to mention the last time the dollar went high against the Yanks an economy bust came along. Much like one is doing now. Last month alone the housing market here droped an average home price by 27,000.00. Only pointing out that the dollar is doing good, is only to devert attention away from the reality that one is coming whether we like it or not.

Answer 4

The strenghtening of the Canadian Dollar has greatly affected my purchasing habits. As I live in a somewhat more remote area of Canada, I shop online often, trying to find the items I cannot get at home. It is sometimes a struggle to search within Canadian companies, but has always been neccesary because once the dollar conversion had taken place and shipping, taxes, duty etc. were paid it was much too expensive to order products from the USA. With the Canadian Dollar on the rise, I have been able to broaden my search to include state side companies. I love having the option of ordering from anywhere in North America, I have found wonderful gifts for my family and friends and some great things for my home as well! Just to clarify, I do not ONLY shop state side now that our Dollar is compareable, I do still think it is important to shop in Canada to support our econonmy and our fellow peers who are trying to run successful businesses!!! But having the option is great.

Also, I have been wanting to enroll in a distance education course through an American school, which is now possible... in fact, I just paid for it last night and am thrilled that the opportunity to save a little money has presented itself.

So in conclusion... I think that it is great Canadians have this door open to them right now, it offers a chance to experience something new, maybe take a vacation with the family, get that fancy new item you have been wanting etc. However, with all this excitement, I would still urge my fellow Canadians to do what business they can within Canada. Our economy will only stay strong if we all invest in it and support it! Happy Purchasing!

Answer 5

Living in Niagara Falls, Ontario and working in sales for a manufacturer that exports about 90% of our product to the US and competing with the US manufactureres I am between a rock and a hard place. Personally I love the fact that I now have more purchasing power in the US and We have started buying more goods, childrens clothes, our clothes in the US as pricing is better taxes are lower and my Dollar is worth so much. We are going on a cruise in a year and have started converting cash already as a crash is bound to happen.

Retailers in Canada have got to start waking up and selling at competitive markups, not screwing those Canadians that are loyal to them.

In my work life it is hard to sell stuff these days. The only thing saving our company is that the industry we are in is at a high in the cycle, we deal in boilers used for power generation, petro refining etc. All in high demand and the US shops are full.

I once heard it said that the problem is Canadians want to have the same lifestyle as the Americans, the same Stuff if you will. When the Canadian Dollar was much weaker that meant higher wages had to be paid in Canada. at a 80 cent dollar this is fine, the world is happy. With the Canadian dollar reaching parity we are always 20% or more higher than the competition.

Manufacturers aren't the only affcted. Look at the Canadian tourism sector. Less Americans touring in Canada due to their decreased buying power here. Less Canadians vising Canadian destinations due to the fact the travel in the US and Europe is "so cheap" now.

This comment that a week dollar is good for Canada is True. If you like to have jobs that aren't directly linked to the oil sands. These other posters talking about competition obviously don't deal much with a US market. If employee's would agree to get paid in US currency at the rates and wages of their US counter parts that would level the playing field for competition based solely on efficiencies, markups and profits.

Answer 6

Wow, I'm impressed. I always thought that Canadians didn't get it. But, you people seem to get it. If the Canadian dollar falls in value by say 50%, it is just like all Canadians taking a 50% wage cut. No country ever depreciated their way to prosperity. As for the price of cars, etc., blame the Federal government. They create the barriers that allow companies to charge Canadians a higher price than Americans. It's called price discrimination. A company like BMW or Toyota can practice it only because the Federal government set up the barriers that stop you from shopping in Detroit if you live in Windsor. Hopeful, when the dollar get to par, more & more Canadians will recognize how borders help companies like Toyota rip them off. Oh, one last thing - you have got to love COSTCO. After adjusting for the exchange rate, their prices in Canada are almost the same as in the US.

Answer 7

It's great to finally see the loonie even or atleast almost with the US dollar but right now it hasn't really affected my buying habits because the loonie will probably need to stay even or above the US dollar for almost a year or longer before any of the major companies decide to lower the Canadian prices to being on par with American prices. So I for one am not going to just go right out and buy a new car because as of right now we are still being ripped off and have been ever since the canadian dollar has started to rise.

Answer 8

I haven't seen much change except for electronics going
down, but am shopping for a new SUV and when comparing
the prices for the US and Canadian market still see a
huge price spread. We in Canada are paying up to 25%
more for the same vehicle. The excuse before was the
value of the dollar, but what is the reason now?
We always seem to pay more in Canada, no matter
what the category and whether that product is produced
here or not.
With free trade we should see all prices come into line
with the US prices, across the board,
in all categories but will this ever happen?
I would imagine the farmers will be getting a better
price for their exported grain now as well....

Answer 9

Speaking as the owner of a Canadian company that is doing construction work on the Caribbean island of St. Lucia, The Canadian dollar being so high is not a good thing for my company nor for my employees. All prices here are negotiated in US dollars, so now my company and my employees take home pay is much smaller then it was a year ago, even thought they are getting paid the same wage as last year. I am going to lose some of my best men because of this------that means the quality and the speed of our work will drop, and that means less jobs in the future, and then ???????

Answer 10

I have a jewelry design site and purchase a LOT of supplies from the US or sites that charge in US Dollars. I'm used to paying a lot more when our dollar is not as strong, so I plan to purchase extra while our dollar is so good. Unfortunately, this also means I'm getting paid less since most of my clients/customers for my web design & jewelry design are American, therefore I charge in US funds.

But like some others, I agree the dollar will crash again, and then it will mean more profit while I sell items I bought for a MUCH lower price!

for us in Saskatchewan, it means a booming economy as well; plenty of jobs and low unemployment rate. Jobs are also paying more so we can be competitive with other large cities in other provinces. But again, housing prices are also higher. I think overall, everything kind of evens out in the end... but it DOES feel better to be able to shop for cheaper!! (or MORE)

Answer 11

Consumer Prices are generally not affected by the dollar strength- we still have a market economy and the price will be what the market will bear. We still pay high prices because we can and we will. If we alter our consuming practices, the market will react. Retailers will have to reduce prices in order to generate sales if sales in Canada decrease. The best way to make that happen is to stop consuming so much- or buy in the US or online until such time as the market adjusts to where it should be.
Why is the Canadian economy still going strong despite US slowdown? Because our retailers profits have risen 30% in 3-4 years -- if you really want to take advantage of the $$-- become a retailer or importer!!