Saturday, December 20, 2014

Excellent exchange taking place on U.S. funds

We're getting guests who are paying for their entire trip by credit card right now to take advantage of the excellent exchange rate on U.S. currency.
One of our anglers e-mailed me today to say he got an exchange rate of 14% with his Mastercard.
The Canadian loonie has been falling steadily all fall and winter, the most likely reason for which is the equally cascading price of oil. Canada is a major exporter of the commodity and the fortunes of our currency seem partly tied to it.
So the game everyone is probably playing right now is to figure when the oil price has bottomed out and therefore the point when greatest exchange can be realized.
When we make a charge to your credit card it is in Canadian funds. If you are from the U.S. the credit card company automatically calculates the exchange rate and makes the corresponding charge to your account in U.S.
In the angler mentioned above's case, a charge of $1,100 Canadian ended up being $945.95. That works out to a savings of 14%.
When coupled with the 6.5% HST mail-in rebate which American guests can get on their fishing package from camp after returning home, the savings becomes 20.5%. Nice!
And with low gasoline prices that are likely for next summer, there may never be a better time to come to Canada!
Credit cards may have other charges, such as a foreign purchase charge, that lower the realized savings. The only way to find out if there are such charges for your card is to contact the card company and find out. Our angler above had no such extra charges from his company.
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