Canadian Dollar smashes though Parity!

[Teddy (IDS Legislator)]

We were at 1.00 CAD=1.00031 USD just a few moments ago!

[Platypus]

Yeah, the Australian dollar was at 99.7 US cents at close of Australian markets, so it'll probably hit parity overnight or next week.

[Ban my account ffs!]

We were at 1.00 CAD=1.00031 USD just a few moments ago!

It was the same in Fall 2007 as well.  It's good for us going into the Christmas shopping season.

[Hatman 🍁]

Third time in my life time. I remember when it was like 63 cents lol.

Yeah, the Australian dollar was at 99.7 US cents at close of Australian markets, so it'll probably hit parity overnight or next week.

Now, isn't that interesting? All 3 are about the same... The Swiss Franc was the last time I checked pretty close as well.

[True Federalist (진정한 연방 주의자)]

Third time in my life time. I remember when it was like 63 cents lol.

Yeah, the Australian dollar was at 99.7 US cents at close of Australian markets, so it'll probably hit parity overnight or next week.

Now, isn't that interesting? All 3 are about the same... The Swiss Franc was the last time I checked pretty close as well.

Oh no!  It's a plot to get us to have one world currency!

[opebo]

I can remember when 100 Swiss francs was about $60 (and that was the price in the Geneva red light district).

[Platypus]

The Aussie dollar has never been at or above parity with the US dollar since it floated, so if it makes it it'd be pretty significant.

I can remember when we dipped below 50c USD

[○∙◄☻¥tπ[╪AV┼cVê└]

Maybe it's time to fix them to each other.

[Platypus]

Well, we topped out at AUD 1.0003= USD 1.00, now fallen back a bit (0.9905). Still, first time since 1983 when the Aussie was floated.

[Fmr President & Senator Polnut]

I remember when I lived there and it never got about 0.75c... grrrrr

[Verily]

Currency union time! (Seriously, would be a good idea, although no one would ever agree.)

[Хahar 🤔]

Currency union time! (Seriously, would be a good idea, although no one would ever agree.)

This would not be terrible at all.

[Gustaf]

Currency union time! (Seriously, would be a good idea, although no one would ever agree.)

This would not be terrible at all.

Why would it be a good idea?

[Verily]

Currency union time! (Seriously, would be a good idea, although no one would ever agree.)

This would not be terrible at all.

Why would it be a good idea?

Simpler, cheaper commercial transactions. No need to go through conversion of prices every time a good crosses the border, which creates massive inefficiencies. There's certainly no downside for economies on essentially the same footing.

[Gustaf]

Currency union time! (Seriously, would be a good idea, although no one would ever agree.)

This would not be terrible at all.

Why would it be a good idea?

Simpler, cheaper commercial transactions. No need to go through conversion of prices every time a good crosses the border, which creates massive inefficiencies. There's certainly no downside for economies on essentially the same footing.

I'd like to see a cite for the massive inefficiencies. As far as I know the money you save on lower transaction costs are fractions of percents of GDP (0.2% is a number I recall from the Swedish debate on the euro).

I don't think the risk of asymmetric shocks is necessarily negligible even with the US and Canada, but it probably has better chances of doing well than the European one, that's true. I'm not sure how good labour mobility is in Canada though. 

[Beet]

The current floating exchange rates are working well for both countries, so there's no need to muck things up by switching to a currency union. Don't fix what ain't broke.

[Verily]

Currency union time! (Seriously, would be a good idea, although no one would ever agree.)

This would not be terrible at all.

Why would it be a good idea?

Simpler, cheaper commercial transactions. No need to go through conversion of prices every time a good crosses the border, which creates massive inefficiencies. There's certainly no downside for economies on essentially the same footing.

I'd like to see a cite for the massive inefficiencies. As far as I know the money you save on lower transaction costs are fractions of percents of GDP (0.2% is a number I recall from the Swedish debate on the euro).

I don't think the risk of asymmetric shocks is necessarily negligible even with the US and Canada, but it probably has better chances of doing well than the European one, that's true. I'm not sure how good labour mobility is in Canada though.  

0.2% of GDP is massive. That's hundreds of billions of dollars (in reference to the American GDP).

[Boris]

Currency union time! (Seriously, would be a good idea, although no one would ever agree.)

USD is already defacto accepted throughout Canada, although they'll give back change in CAD. So the current parity is definitely convenient, so I definitely agree with you. IMO ideally the US and Canada would establish something vaguely similar to Schengen.

The current floating exchange rates are working well for both countries, so there's no need to muck things up by switching to a currency union. Don't fix what ain't broke.

It's fine now, but it was pretty bad for Canada during the 1990s...

[MaxQue]

No way than the Canadians would accept to leave the control of the currency to another country.

[phk]

No way than the Canadians would accept to leave the control of the currency to another country.

No way they would surrender control of their monetary policy to another country either.

[Gustaf]

Currency union time! (Seriously, would be a good idea, although no one would ever agree.)

This would not be terrible at all.

Why would it be a good idea?

Simpler, cheaper commercial transactions. No need to go through conversion of prices every time a good crosses the border, which creates massive inefficiencies. There's certainly no downside for economies on essentially the same footing.

I'd like to see a cite for the massive inefficiencies. As far as I know the money you save on lower transaction costs are fractions of percents of GDP (0.2% is a number I recall from the Swedish debate on the euro).

I don't think the risk of asymmetric shocks is necessarily negligible even with the US and Canada, but it probably has better chances of doing well than the European one, that's true. I'm not sure how good labour mobility is in Canada though.  

0.2% of GDP is massive. That's hundreds of billions of dollars (in reference to the American GDP).

Eh...0.2% of a large sum is still only 0.2% though. Once you divide it by the total size of the economy it still does not make that much difference. The difference between having an independent monetary policy and not having is, on the other hand, massive if you're hit by, say, asymmetric shock.

[Hatman 🍁]

USD is already defacto accepted throughout Canada, although they'll give back change in CAD. So the current parity is definitely convenient, so I definitely agree with you. IMO ideally the US and Canada would establish something vaguely similar to Schengen.

No way I would accept American money at par if the Canadian Dollar was worth more.

[I spent the winter writing songs about getting better]

Lots of places in North Dakota accept Canadian money too (though they'll usually have the exchange rate on hand to calculate instead of treating it as parity). It's not uncommon even in Bismarck which is quite far from any population center, basically some local places will accept it though most big chain places won't. In places like Grand Forks even the chain places often accept Canadian dollars.