Jobs & Money Detail
Currency exchange considerations
Canada’s economy is forging ahead in 2008 thus far, meaning that jobs are plentiful and wages are growing steadily
However bright this economic outlook might appear, though, there could be a black cloud on the horizon for those who have yet to put in place a contract with a currency exchange specialist. Why? Well, if you exchange your pounds to Canadian dollars at a time when the Canadian economy is racing ahead and the British economy is limping, the rate of exchange you achieve could put you at a disadvantage when it comes to setting up your new life across the Pond. In 2007, savvy Canadian Dollar buyers bought early to capitalise on a Pound to Dollar exchange rate high of CDN$2.356, in January 2007, while those who exchanged in November achieved a rate of just CDN$1.90.
Big deal?
Well, if the amount exchanged was £250,000, then those who exchanged in January would have got their hands on CDN$114,500 more than those who did so in November. To put it into perspective, this is enough to buy two Ford Mustang Convertibles and a Ford Fusion as a runabout; or more than a third of the value of an average house in Canada – and have enough loose change to splash out on some seriously impressive skiing gear for all the family. But, we hear the uninitiated among you cry, 'what if we weren't ready to be dealt dollars for pounds when the exchange rate was it its highest?' Simple. You place a forward contract with a currency exchange specialist, putting down a deposit to ensure that when the exchange rate reaches or gets as near as realistically possible to your desired exchange rate – and they then buy the currency for you at the right time. The issue of timing is vitally important as it will determine how wealthy you are when you arrive in your new country and how much money you will have to set up your new life, such as that small matter of buying a house.
Foreign exchange consultants will not only provide an essential insight into the currency market's movements and also outline the best options available to you and help you to implement that plan to ensure you get the most currency for your money – whilst reducing any risk that an adverse movement in the exchange rate might ruin your plans.
So Canada's bullish economy need not inevitably lead to a black cloud over your currency dealings. With a little forward planning, by the time you arrive in Canada you'll be laughing all the way to the shops!
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