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> 1CAD will also always be 1CAD. People who live in Canada are paid in CAD, people who live in America are paid in USD. One of them is a stable reserve currenc
by 908B64B197 5y ago
> 1CAD will also always be 1CAD. People who live in Canada are paid in CAD, people who live in America are paid in USD.
One of them is a stable reserve currency. Goods are priced in USD then the exchange rate is used to get the final price in other currencies.
- arcticbull 5y agoExchange rates really don't matter much for most people. Most people buy goods at home. Relative strength and weakness of a particular currency against another just indicates whether imports are more economical or whether manufacturing at home + exporting are more economical. This change over time is reflected in both exchange rates and accounted for in PPP adjustment. It may fluctuate over time, but I don't think that's a huge deal when deciding which country you plan to work in.
- arcticbull 5y agoActually, one other important note: 1USD isn't really always 1USD in the sense that imports become relatively more or less expensive for Americans in America. Reserve status doesn't really correlate too much. Check out DXY. You'll see that as compared to a basket of other world currencies the USD has ranged substantially, from 0.76 in 2012 to as high as 1.02 in 2016. [1] Being the reserve currency more often than not means that its a unit of account. [1] https://www.investing.com/currencies/us-dollar-index https://www.investing.com/currencies/us-dollar-index