How's your currency doing against the $US?

[webado]

Radio stations in Montreal report huge lineups at the border crossing fro the US (about 1 hour drive from Montreal). Looks like everybody is flocking down to Plattsburgh to the nearest US Best Buy or Ponderosa Steakhouse LOL


All this is rather artificial. My experience has taught me that:

1. Prices are elastic and will rise immediately in most stores so as to wipe out any gains due to a "better" exchange rate.
2. Consumer exchange rates do not reflect these "official" exchange rates in a timely manner - so we typically cannot take (full) advantage of them. South of the border they won't exchange our CDN dollars at those mouth-watering rates at all, if they even take them without a big fuss. Besides, most visitors from Canada to the US do that on weekends when banks are closed.
3. If we buy US dollars at our local banks before heading south, again the exchange rate isn't quite as attractive. There is a built-in profit to the bank or exchange handler which can be quite a few cents on the dollar.
4. Historically using a credit card has tended to be more advantageous since exchange fees are waived or at least lower then actual cash currency exchange. The risk is that the exchange rate used is on some arbitrary date not necessarily the date of the transaction - they say its' the date the transaction is posted to the account. I have noticed that date being delayed to a date when the rate isn't quite as good. But I suppose it can go both ways too. Everybody is out to make or save a buck on exchange rates, and we, consumers, are the least able to control that without turning into actual currency investors.
5. Yesterday several branches of some banks reported running out of liquid US currency to satisfy demand

[DSL Guy]

Dubai recently bought out 20% of Wall Street, Dow Jones. Despite concerns raised back when they were going to be in charge of ports security in the US, they managed to buy out 1/5th of Wall Street.

I also hear about a dozen other wealthy foreign investors/ Banks came in and bought up the remaining 80%.

Another question gone unanswered is right after 911 hit NY, the US gold reserves typically held there were moved. Some speculate they were moved to Dubai, but Dubai will not respond to the question. The US gov will not either.

[DSL Guy]

Originally Posted by chrisooc

All this is rather artificial. My experience has taught me that:

1. Prices are elastic and will rise immediately in most stores so as to wipe out any gains due to a "better" exchange rate.

Yes but news reports say many Canadian retailers are beginning to drop their prices to keep Canadians from spending the currency outside Canada.

[webado]

Originally Posted by DSL Guy

Yes but news reports say many Canadian retailers are beginning to drop their prices to keep Canadians from spending the currency outside Canada.

Haven't seen that yet. For the time being gas has risen again

Not sure what prices are dropping which aren't simply seasonal price fluctations (sales, liquidations, promotions). Retail is cutthroat business at the best of times, every time a new store opens, 2-3 slightly older ones go out of business.