Canadian Lodges charging US$

[Woodsman]

Whatever the "market rate" is listed on the stock exchange,the banks charge an extra $.05 as an exchange premium. They have to get their "piece" ,too.

But why would you involve the banks to exchange anything in this situation?
When dealing with a Canadian based business you can pay in Canadian funds.
Convert the US listed price at the current rate and pay in Canadian funds.

[JBen]

Current live USD/CAD spot rate is 1.3995.
If you want to know the CAD/USD divide 1 by the above (1/1.3995). So presently as I type this the CAD/USD rate is .7145

Trimmer.
Do you work for free?

The difference between the spot rate and what a retail client at bank would get is known as the spread. So assuming you go to bank X and ask to exchange 1 CAD into USD.

Bank X would then sell the 1 CAD and buy X USD at the spot rate. (In reality they don't, but there are daily cash flows of large amounts in the millions, tens of millions, hundreds of millions) that treasury departments monitor. On any given day Bank X might be long or short USD and thus in the market buying/selling to cover their books.

Is it ok if the trader, and the clerical people make a living?

[JBen]

just thought I'd add.

Assuming the lodge is advertising USD1,400. At current rates (spot) that's CAD $1,959.41 ( 1,400 usd / .7145) or conversely if you had $1,400 USD you wanted to sell.
1,400 x 1.3995 = 1,959.30

[cantcatchacold]

Here's what I don't get. If most places don't take Canadian funds then why do the complain when our dollar is high. I remember listening a few years ago at the sportsman show to several owners saying that our high dollar was keeping Americans away and killing business

[redd foxx]

I remember listening a few years ago at the sportsman show to several owners saying that our high dollar was keeping Americans away and killing business

Because unlike us, it appears some Americans don't want to travel where they don't get more value than $1.00 for each of their $$ where as Canadians who love the sun in winter have no choice but to do so.

[Woodsman]

Here's what I don't get. If most places don't take Canadian funds then why do the complain when our dollar is high.

Actually they can't refuse Canadian currency as technically it's the only legal currency in Canada.
They can voluntarily accept other currencies but the Canadian $ is the legal currency in Canada.
If they decide to list their prices in another currency it tells you who they are targeting as customers.

[chris lavoie]

Went to the bank today and for every $1.00 US, I received almost $1.35 CAD. I am in US funds so I watch it close.

[chris lavoie]

I was in Florida in Dec and I used my credit card once and the bank charged me an exchange rate of over 43%.

[chris lavoie]

Chris where are you getting your figures from?
Currently at just over 71 cents.

I did the figuring wrong, as it can get confusing. I should have said $1400.00 plus 35%.

[B Wilson]

Here's what I don't get. If most places don't take Canadian funds then why do the complain when our dollar is high. I remember listening a few years ago at the sportsman show to several owners saying that our high dollar was keeping Americans away and killing business

When our dollar was valued at $1.20, yeah the it was still dollar for dollar at the resort, but the cost of gas, beer, food (everything else) in Canada was costing the American tourist at least 20% more. That kept some of them away.