If you’re moving to Canada, क्यों यह महत्वपूर्ण है विनिमय दर में परिवर्तन करने के लिए ध्यान देना अमेरिका के बीच. और कैनेडियन डॉलर?

रास्ते पर निर्भर करता है क्योंकि मुद्राओं बढ़ रहे हैं, it can cost you big bucks.

Here’s what happened to the city of Vancouver.

As reported in today’s वैंकूवर सूर्य under the headline, “Exchange risk could cost city $60 दस लाख: Loan for Olympic Village must be repaid in U.S. dollars bought when the loonie was aloft,” the city has gotten into trouble over the financing of the new ओलिंपिक विलेज:

Just when you thought you’ve computed all the risks from the Olympic village crisis, here’s another. The $1.2-billion development has been financed using international “currency swaps,” one of the riskiest ways to borrow.

Here’s the situation.

The builder of the Olympic village, Vancouver’s Millennium Development, arranged to borrow its construction budget for the Olympic Athletes’ Village from Wall Street’s Fortress Investment Group. That $750-million line of credit was to be borrowed in U.S. dollars, then swapped into loonies, to pay contractors.

That probably seemed swell at the time. Our loonie was flying high back then. For a period it was even at par, or above the U.S. greenback, and seemed destined to float there. अमेरिका. dollars actually seemed cheap.

Around then, we know Millennium began to draw down about $300 million of that $750 million Fortress loan, though exact dates of when money was drawn aren’t public. But supposing Millennium made its draw when the loonie was at par, या तो. Millennium would have roughly gotten a one-to-one deal on its loan. That is: $1 Canadian = $1 US.

Not bad. How can you go wrong with a deal like that?

अच्छी तरह से, quite easily when world currency currents turn against you.

Photo by Payton Chung (फ़्लिकर)