Home > Uncategorized > Canadian Dollar Loses 2.5 cents in 28 hours

Canadian Dollar Loses 2.5 cents in 28 hours

From noon Wednesday to closing Thursday, just over 28 hours, the Canadian dollar dropped from 0.9741 to 0.9503, a drop of almost two and a half cents.  Have we seen the dollar’s current peak?

Although our Canadian book industry is made up of businesses that are net-importers, the concern of net-exporters in this Globe and Mail piece from Wednesday speaks to the concern we all share:

Forget rising interest rates. Exchange-rate fluctuations are the top concern among Canadian exporters for the coming months, a survey showed Wednesday.    [continue reading here…]

The biggest challenge facing stores (somewhat) and distributors (in a major way) is that the day the shipments are delivered is not always the same day that U.S. distributors and publishers are paid.   Most of us work on 30-day accounts, and if payment is by credit card, have no control over whether or not payment is on a “good” day or a “bad” day vis-a-vis the exchange rate.

But for wholesale distributors, arrangements are often struck on the basis of net 60, net 90 or even net 120.    It’s fairly impossible for a distributor to know what the rate might be when they make their payment, but if posted Canadian retail prices aren’t flexible or dynamic, some retailers forsake loyalties and flee to U.S. distributors.

This situation isn’t being lost on the Canadian distributors however, and in a future item here at Christian BookShopTalk, we’ll look at the difference between U.S. companies selling you the odd book directly, versus the issue of them soliciting sales of items for which a Canadian distributor has established Canadian rights.

Track the dollar’s progress (or retreat) daily at this Bank of Canada official site.

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