Canadian Dollars, why a disadvantages?

Question

I heard the force of the canadian Dollars had increase. Can $ > US $ (Please correct me if I'm wrong)

In the news, many people say the increasement of the Canadian Dollars represent many disadvantages.
Today, most of the people go to shopping in the USA.

So, when the Canadian Dollar is higher than the US Dollar, why it's a disadvantage?

Where are the advantages?

Is it ideal to go to shopping in Canada now?
Is it good idea to exchange canadian money to american money?

Answer 1

A U.S. dollar has more value than a Canadian dollar.

Answer 2

The govt. of Canada tries to keep its dollar around 80 cents of the American dollar. This makes it easier to sell Canadian goods in the US, and also encourages Americans to come to Canada to visit, which is one of their biggest 'export' industries (i.e. it brings foreign currency into the country).

The Canadian dollar is worth more than the American dollar now, not because of anything the Canadians have done, but because the American dollar has lost so much of its value. In a few weeks or months, the Canadian dollar will float back down to 80 cents. In the meanwhile, American goods will be cheaper to Canadians and there will be a damper on American tourism in Canada.

If you exchange American money for Canadian money, you will lose some value when the Canadian dollar comes down. Generally the movement between the two currencies is not worth the trouble of investing. I always come home from Canada with a pocket full of coins and paper money, and I'm getting a good-sized collection of it now. I might have made several dollars! 8^)

American dollars are losing value because of very serious and ominous problems with the American economy. We are deeply in debt and our creditors are reconsidering lending us more money because we are acting so irresponsibly and we have apparently no plan to get our spending under control. In the last few years alone we have sold more than a trillion dollars worth of America's future to the Chinese. If they and the Japanese and British simply decide we are a bad risk and stop lending us money, our whole economy could collapse like a house of cards!

Answer 3

Here's the one big disadvantage.

The Canadian economy is very intertwined with the American. If the Canadian Dollar surpasses its American counterpart in value, Canadian exports to America increase in price. As exports become more expensive America will import less and go to other sources for the same goods.

Also, as America's Dollar goes down in value, Canada will increase imports of goods.

Thus, a more powerful Canadian dollar will, in the long term, cause a shift or imbalance in import/export ratio.

(This is just one, over-simplified example.)

Answer 4

Right now, and for the first time in several decades, the Canadian dollar is stronger than the U.S. dollar. The last time I checked, the exchange rate was C$1.06 to US$1.00. In other words, if you go shopping in Canada with US dollars, you may have to pay about 6 percent more than the item is priced in Canadian dollars. You may need to convert your Canadian $$ to US $$ to shop in the US. I haven't shopped in the US near the Canadian border lately. But I can recall shopping in Canada with my US $$ in the 1990s. My US dollars were worth a lot more than the Canadian dollar, and shopping in Canada with US money was a bargain.

Answer 5

I live in Canada and yes the CDN dollar is at par with the American dollar and often circles 1 or 2 cents higher. I do shop in the United States, for example I bought my car there, Audi A4 because it was 5,000 cheaper their. Many companies are not bothering to lower their prices, (especially with cars) and are getting sued.
There are no advantages to go shopping in Canada if you are American because the markets are just too different and therefore in Canada, things are generally more expensive.
Why would you convert money? Where are the advantages their?

Answer 6

The Canadian dollar, like many other currencies, has recently risen against the US dollar. Like most economic news, this is (for Canadians) a mixed bag: they can shop in the US for better prices, and import products profitably, but it becomes more difficult to sell Canadian products in the US, as US buyers must now pay a premium for these.

Answer 7

well, if you had any canadian money, turn it in now and get us dollars. I happened to have 30 canadian dollars saved up, so this will be good, payed less than 30 us dollars for it, now I have more than 30 us dollars. It doesn't matter where you go shopping....

Answer 8

as of today, they are about on par

pros... you can buy stuff in the us cheaper than before

cons... fewer american tourists and the canadian economy will suffer from this if it doesn't dip back down. personally, i liked it when we had a mid 60 cent dollar, all the people are yipping about vehicle costs right now, and are forgetting that when our dollar was low, we bought cars cheaper here than americans did at home, and yet reaped the reward of the american economy on our trade ins because they were worth more... equaling cheaper driving... now it just costs more and many are too ignorant to see this

Answer 9

change ur saved up money from US $ to Canadian or even better Euro!
if things continue like now, u will get more money than u have actually paid for.
nothing has to do in shopping, money=money ->everywhere.

Answer 10

keep your dollars in euro. some times it is disadvantage to have higher or stronger value of currency.