Dear Desi's

Need some suggestions. which is better way to keep your currency without losing on the fluctating exchange rates

Is it better to keep your money in C$ or U$ .

as of now, according to me its Canadian dollar

-----------------------------------------------------------------
i..........rock........!!!!!

Thanks IRock

Just to re-phrase my question. suppose the money is already in US currency, does it make sense to convert to C$ or leave the way as it is... in US$

I think, its hard to say which way a currency is heading... all that is available is economist's best estimate... the pair was at parity not very long ago... right now USD is sitting around 1.02 CAD... economist expects USD to get a little stronger (upto 1.03 or so) in short run... however long run expectation is for USD/CAD pair to stay within the range of .95 to 1.05 in 2008 and .98 to 1.00 in 2009 ...

You can do your math by multiplying your savings with the lowest and highest of the range... you may loose or gain depending on the timing of purchase and sale...


Please note the numbers I have given above are the economist's best estimates corroborated by two Canadian banks.

Hope that helps!

-----------------------------------------------------------------
Vik

If I were you, I will keep it 50:50... lowers the risk a bit... of course gain, if any , will be lowered as well.

I also agree with Viggy, currently all our family, friends discuss this question often and are in view of maintaining accounts in both currencies. You never know when USD runs up or when CAD!

MAK1,
I can understand your situation. Many people from the Gulf save their money in US$ and that is a downer in these current situation . US$ has still not reached it lowest point which means that for sure it will go down even more. Can $ is a petro currency. The more the crude oil goes up (which it will not from this point), the more it will go up. With the economy of Canada in mild recession (due to US housing / credit crisis), the CAD $ will trade in the range of 90 cents to 100 cents to the US $ (Currently it is in 98.08 cents to the US$)

If I were in your position, I would bet on the Euro or the British pound. Those are very stable curerncies as of now.
But be informed that some time in the early to mid of 2009, the US $ would have reached it lowest point and the next step is that it would go up. At that time (you will have plenty of indications regarding that), you should convert your Euro / Pound Sterling to US$ and you will see a 20% to 30 % appriciation in just one year.

The best option is to take all your US$ and turn it to Cad$ and invest in a house where you are currently staying ( I belive near Montreal, near Quebec). If you are not interested in that option, You may want to consider putting the money in a property in India.

Hope this helps.

TK A

-----------------------------------------------------------------
I am a Gents and not a Ladies.