Canadian Dollar highest since 1977

[Sean]

When making a big American purchase, a headline like the one in today's paper makes me smile. Feel a bit sorry for Canadian exporters, who will lose out as a result. But rest assured, this state of affairs won't last (I lived in the U.S. during the 62 cent Canadian dollar--yikes!). Just hope it lasts long enough to make our Canadian Red purchases, though.

[Michael Hastings]

Canadian dollar highest since 1977

Thanks, George

[Sean]

I'm not an economist, but I'm not sure in this case whether it's actually a result of any weakness in the U.S. dollar at the moment, or actually just the unusual strength of the Canadian buck. Canada's going gang-busters, especially with those Alberta oil fields (wish I'd listened to that dude in that bar in New Orleans who told me to invest 4 years ago).

[Jeremy Torrie]

All I know is that it helps my bottom line real well when buying stuff in the US.

I can't tell you how disappointed I am when I have to deal with the service and sales people of Canadian arms of certain hardware and software companies. Try getting an email of phone call back the same day...at least the counterparts in the US understand the speed of business.

Plus, they mark up 20% based on the exchange and don't factor market fluctuations such as what we're seeing today.

[John Moores]

It's good news when making big US purchases. Not so good when billing the US for jobs. I remember the days when a tiny 5k US job turned into something like 8k up here. Good times ;)

John

[donatello b]

" weakness in the U.S. dollar at the moment or actually just the unusual strength of the Canadian buck"

probably both ..

ranting !!!
with more on US weakness ... US $ is very weak against EURO over past 7 years ... IMO Japan & China helps support the US $ and if they stopped it would FALL ... lets see US takes in ( income) X $$ and spends Z$$$ ... now if that was a BUSINESS model i don't think many would follow and most would stay clear ...

[Alex Boothby]

Don't worry - FED chairman Ben Bernanke has stated that if economic crisis occures he can always just print more money and drop it from helicopters, thus earning him the nickname "Helicopter Ben". Yes, you're in fine hands with the wonderfully private "Federal" Reserve.

[Mark B.]

When Red starts shipping, the value of the U.S. dollar will go up a bit.

[Yash Keough]

The high dollar here pretty much sucks for film production. While I'm no expert by any means, I believe based on what other more informed people have told me that the current value is too high. From what I've heard, somewhere right around 80 is perfect. While the film industry is but a small part of the overall economy, the low 60s was apparently incredible. The producer at the company I worked for started in the 90's when the dollar was low and said it was incredible to see the number of productions and rate at which people advanced. These days, in Toronto at least, film appears to be dead quiet almost (although Toronto has had some other factors that other Canadian cities haven't had to face, such as SARS) My 2 cents anyways :-)

[Jeremy Torrie]

It goes back to another thread -as far as lack of production from the US. It's simple economics and producers look for any way to stretch their bucks...and if that means airlifting people to Australia or NZ because of incentives plus a favorable exchange rate, they will do it.

Luckily for us we closed a 'co-pro' (as opposed to a service deal -meaning we brought equity to the pic and not just tax credits) with an LA company this last week, and we had budgeted based on 10% exchange only and have built in a hedge, but we do have a healthy contingency in the event anything crazy happens like remain above 90 cents.

[donatello b]

yesterday Canada was the place for producers to go for tax incentives and good exchange rate ..

Today ! well some of the states in the south ( LA particular) are offering very good tax incentives and with the tax incentive in the 2004 employment act ( max 15 mil budget) many indies are shooting there ...

tomorrow ??