Strong Canadian Dollar Affects Earnings
making money May 29th, 2007This month has been particularly painful as the Canadian dollar is at $0.932 USD. Back in March, I wrote about making money with currency flucuations with Google. I was thinking of putting my Google payments on hold but many experts are predicting that we will hit par before rebounding back. I’m no expert in this field, but I don’t think the Canadian economy will sustain a loonie worth US$1 (especially out East).
Whats even worse is that payments that come in via paypal such as my AuctionAds payments, will get dinged by the currency conversion that Paypal does which is typically 2 - 3% lower so instead of getting a 1.07 multiplier (based on today’s 1.072 conversion) I will get more of a 1.04 multiplier on my payments.
A $5,000 US payment back in March netted $5,900 Canadian. Today, that same $5,000 payment would result in $5,350. Ouch! I think its time I open a US currency account ;)
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May 29th, 2007 at 6:39 pm
Don’t forget that a big part of it is that the US dollar is declining.
May 30th, 2007 at 7:34 am
I’ve been trying to make sense of all the charts at xe.com comparing the USD/EUR, USD/CAD, CAD/EUR and it does seem like its a combination of USD getting weaker, and CAD getting stronger.