In Africa’s big cities, many entrepreneurs are hearing about the recent developments involving the Canadian dollar and the African Diaspora – especially South Africans making large money transfers to Canada. This is despite the current state of Botswana’s currency peg. As African countries benefit from the crude oil trade, Canadians are banking on the values of the Canadian dollar to increase, while South Africans takes advantage of the drop in the South African dollar and make large money transfers to Canada.
The recent announcement by South Africa that it will no longer coordinate with the US dollar after July is viewed by many as a means of increasing its own share of the African oil market. It also hopes to strengthen its currency by detaching itself from the USD. However, while this might be good for the South African economy, Canada’s bottom line might suffer as a result. Currently, crude oil prices are rising (in South Africa, currently USD-ZWD at around USD 47 a barrel) and this have yet to reach the level where the increased value of the Canadian dollar will have any effect.
Canadian officials have not said anything about the impact of this new policy on Canadians who currently send money to Africa or do business in Africa. However, it can be assured that Canada’s current situation (firing of its diplomats over corruption charges and a weakening economy in the midst of a recession) is not going to have any positive effects on the values of its currency. This is even as the country prepares to host the FIFA World Cup soccer championship in 2021. Even if Canada does pull off an upset victory over Germany and Argentina in the tournament, the visitors will have to pay the USD rather than the DMAD.
If you are currently trading in the Canadian dollar, you might as well sell your assets before you lose even more. Since most commodity and currency exchanges now offer conversions between the currencies of Canada and the United States, you should take advantage of this feature. You don’t have to convert the currency of the US just to trade in the Canadian dollar. You can also buy and sell at any time, day or night, from anywhere in the world. The only thing you need to do is open an online account. For most online currency exchanges, all transactions are usually handled securely so you can rest easy knowing that your private information is protected.
If the move by Canadian authorities to devalue the currency is unexpected, you could suffer a financial loss. Currency rates can vary wildly from one country to another. You need to do some research to find out which currency pairs are the best for you. Just because you are expecting to receive better exchange rates does not mean you should go out and get an exotic foreign investment opportunity just yet. Go with traditional investments in safe currencies – the Canadian dollar and the US dollar for example.
If the Canadian dollar drops below a specific level – called a market floor – you will have to sell your Canadian dollars to settle the amount owed. The problem with this strategy is that it may be difficult if not impossible to sell your currency back into the market. The trader may be stuck holding worthless pieces of paper as they will not be able to make any profit. A better strategy is to hold onto the cash and wait for the market price to go up again. This tactic may seem unprofitable at first, but you can use it as a learning experience as well.
As the economy of both Canada and the United States recover, there will be a growing interest from international investors to purchase Canadian dollars. When this happens, there will be a high demand for this type of currency. Because of this high demand, Canadian dollars will quickly appreciate in value. This will likely lead to further fluctuations in the exchange rate.
If you want to learn more about Canadian currency exchange rates, you can visit websites dedicated to the topic. They usually list current information as well as historical data. You can also find information on currency exchanges that are not based on the Canadian market. These sites usually have free accounts so that you can practice without risk. While currency exchanges can be a profitable way to make money, it is important to remember that no investment guarantees your profit.