Should I buy American dollars?

I'm leaving from Canada soon on a RTW trip. With the Canadian dollar
being so strong should I buy as much as I can and use that money on
the road? I am thinking that the USD will have more buying power than
the CDN and with a year or so the CDN$ may not be as high. Thoughts?

in article , motoyen at
wrote on 12/16/03 4:51 AM:

I'm leaving from Canada soon on a RTW trip. With the Canadian dollar
being so strong should I buy as much as I can and use that money on
the road? I am thinking that the USD will have more buying power than
the CDN and with a year or so the CDN$ may not be as high. Thoughts?


If you can predict currency fluctuations, go work for Bank of Canada - they
pay a guy a lot of money to guess wrong.

That said, you will generally get a better exchange on the USD, and in more
places, than the CAD, because of the volumes involved. It's sometimes
cheaper to pay the exchange CAD-USD-whatever than CAD-whatever.

If I'm going somewhere outside Canada or the US, I will generally carry USD
(or Euros) combined with a credit balance on my credit card if I need a cash
advance in local currency (the exchange is usually interbank + 2% versus
4-10% at a cambio, and the credit balance means I don't get hit with credit
card interest; most cards will also charge a flat fee which means you should
take a fairly hefty advance - not $20 or $50 - if you feel "safe" in so
doing)

In article ,
(motoyen) writes:

I am thinking that the USD will have more buying power than
the CDN and with a year or so the CDN$ may not be as high.

Have you read the news about the falling US dollar? Speculation is not
investment.
edwardseco

I know people who did that last year, expecting to hold a stronger currency.
However, the USD continued falling against other currencies, and they told
me later that they would have had 30% more money had they held onto their
own currency and converted it when they needed. It's a gamble...you have to
decide what risks you are willing to take.


"motoyen" wrote in message
om...
I'm leaving from Canada soon on a RTW trip. With the Canadian dollar
being so strong should I buy as much as I can and use that money on
the road? I am thinking that the USD will have more buying power than
the CDN and with a year or so the CDN$ may not be as high. Thoughts?

My parents are RVing in the states and they said that they heard the US was
going to raise interest rates and that should drive the US up.

Scott
"Edwardseco" wrote in message
...
In article ,
(motoyen) writes:

I am thinking that the USD will have more buying power than
the CDN and with a year or so the CDN$ may not be as high.

Have you read the news about the falling US dollar? Speculation is not
investment.
edwardseco