Take a closer look at the Canadian Dollar
exchange rate and market forces.
Market volatility could mean significant challenges for migrants but there are ways of making currency conversion work to your advantage, Halo Financial Director David Johnson says.
Canada seems to be operating in a different dimension to the rest of the Western hemisphere. Canadian interest rates were raised by another 25 basis points at the Bank of Canada’s July meeting in response to solid domestic data and good receipts from growing commodity exports and we cannot forget that the Canadian banking system is in much better form that that of America or Europe; largely due to long standing regulatory constraints.
However, the volatility in other markets, including Canada’s chief export client, America, is causing some significant volatility in the Canadian Dollar. In the last month, the Sterling – Canadian Dollar exchange rate has been down in the CA$1.48 area and as high as CA$1.62.
Clearly, that fourteen cent swing is a very significant move if you are either buying or selling the Canadian Dollar. As the average migrant moves something like £200,000 to Canada, that represents CA$28,000 of either gain or loss dependent on your timing which is a fantastic hourly rate when you think about it. For most migrants, the offer of a one month contract of work that paid CA$28,000 would be snapped up, especially when you don’t have to actually do anything for the return other than enlist the services of a currency company like Halo Financial to monitor the currency market for you.
And that is the key to making your currency conversion work for you while you plan your migration and spend your every waking hour arranging the myriad of things you have to arrange when you move to another country.
Making currency conversion work for you
The key is to have the right information, the right analysis, the right tools for the job and the right strategy to ensure you get the most out of your currency exchange. In essence, it is about either becoming an instant currency market expert or enlisting a partner to help who has the right expertise to guide your actions. I must confess that even after nearly two decades of being involved in this industry, I still don’t profess to know everything about everything so I would urge you not to try to learn it all in a matter of weeks and I am always mindful of the adage that "a little knowledge can be a dangerous thing".
However, we often find that clients are hugely grateful for the availability of a currency specialist to answer questions about the market movement, to highlight changes in conditions; both positive and negative and to offer suggestions on how best to take advantage of positive exchange rate movements whilst protect against the potential for costly adverse movements. Sometimes it is simply a matter of reassuring someone that their own idea is perfectly valid but there are plenty of occasions when our Currency Consultants start from square one and take a prospective migrant right through all the opportunities and pitfalls, detailing all their options before we get to a plan that suits their particular circumstances.
How Halo Financial can help
Most peoples' circumstances can be analysed and assessed within a 30 minute phone call and a strategy formed to make the most of the available time. Your Halo Financial Consultant will be adept at talking you through your own requirements, needs and limitations and checking that the consultant’s picture of your position is accurate.
Now if that half hour chat results in a saving akin to CA$28,000, then you will be benefitting from an hourly rate even premiership footballers would feel envious of ... oh and ice hockey players as well.
If you would like to talk about your requirements and get an assessment of the market conditions as they affect you, contact Halo Financial and speak with a consultant today.
- Halo Financial is a leading specialist provider of commercial foreign exchange services for both international business and private individuals who require foreign currency and need expert assistance in successfully managing their foreign exchange exposures. They are a partner of Canadian Visa Bureau, an independent company specialising in helping applicants emigrate to Canada.
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