Foreign Exchange Rates by Lucas Mcdonald

Welcome!

lucasmcdonald1_2 — 2025-04-13 02:51:24 UTC

Hello and welcome to my padlet everyone! In this post, I will be talking about foreign exchange rates, please enjoy learning about them!

Website #1

lucasmcdonald1_2 — 2025-04-13 03:00:25 UTC

This article talks about how the Canadian dollar has soared in value since the implementation of Canada's tariffs. There is an ongoing tariff war between china and the U.S. currently, so Canada has had enough and put their own sauce on the butter chicken and decided to fight back. With these, U.S. investors have dumped their money out of U.S. money investing and have resorted to the Canadian dollar, making it rise in value. I chose this article because it's informative and straight to the point, and it also gave me insight on the markets values when they open and close.

Inflation Information Website #2

lucasmcdonald1_2 — 2025-04-13 03:12:55 UTC

This article talks about predicting whether the Canadian dollar will help with making inflation increase. This is because, as inflation increases so do the prices, so Canada's spending on importing and exporting goods will cause them to spend more as the value of their dollar fluctuates from going down and up. Since the start of 2024, the dollar had dropped 8%. Now, most of what Canadians own is actually produced domestically, thankfully saving us if the costs get too much. 20% of what we own is foreign owned, half of that which comes from the U.S. I chose this article because it had a lot of information of what can become of the Canadian dollar, and gave me great information and I learned my financial future as a Canadian citizen.

What is it?

lucasmcdonald1_2 — 2025-04-13 22:40:01 UTC

Foreign Exchange in simple terms in the exchange of currency to currency in one country to another. For example, Canadian currency being exchanged into a Cuban peso would be worth a lot more there since Canadian's economy is more valuable and GPD is higher, so exchanging one Canadian dollar into a peso as of now (2025) would get you 17 pesos, which is over 1700% of an increase, which is an insane return.

Website #3

lucasmcdonald1_2 — 2025-04-13 22:48:44 UTC

This website talks about why the Canadian dollar value is so low in comparison to USD. The reasoning? Due to recent high tariff implementation, unemployment rate on the rise and weak economic growth, Canada's dollar remains in the back seat as USD drives the whole thing. Now, Canada can still increase the value of their dollar, but it'll take a lot of trial and error, and helping citizens gain more jobs to increase the value of the Canadian economy. The Canadian dollar went from 1.33$ exchange to 1.44$. Now, after Trump exempted Canadian from tariffs for a month, it dropped 2 cents and went to 1.42$ which is little progress. This shows that Canada's currency value hugely relies on what happens with other countries it is affiliated with like China Russia and England. This video taught me how much the Canadian dollar had dropped in value, I didn't know it had dropped 8% until I read this article which was very informative, I liked how they used graphics to explain the article so it was easier to understand.

Website #4

lucasmcdonald1_2 — 2025-04-13 22:57:46 UTC

This article talks about when the Canadian dollar was above (or close to) in value to the US dollar. The reasons why? The price of oil and other commodities was record high, and Canada was selling and making huge money to other countries. Employment rate was also way higher along with retail sales. So the key to getting the dollar higher is getting more employment in the economy which will get more money in the hands of Canadians, with these more things will be purchased which will give the government more money which will increase the value of the country. Also making prices higher for our precious goods will help tremendously, whether the Canadian governments does this (or not) will determine whether our economy gets back on its feet. This article taught me what the downfall of my countries currency was and why it happened, which I didn't know before I read this article. I liked it because it gave insight to how the economy was in the year 2007 and what was happening at the time, from the big to the little things.

Image #1

lucasmcdonald1_2 — 2025-04-14 00:00:59 UTC

This image shows the exchange of Canadian currency and the euro, the euro being one of the top 10 strongest currencies in the world, while Canada's lower then top 10, showing we have a long way to go

Image #2

lucasmcdonald1_2 — 2025-04-14 00:11:24 UTC

This picture shows the constant and daily changes of each countries worth and currency, this shows the dog fight for each country trying to be on the top in such a hectic world where every country is trying to be on top.

Video #1

lucasmcdonald1_2 — 2025-04-14 00:19:46 UTC

In this video, it talks about to use foreign exchange rates in the real world and the business world. In this day and age, rates are fluctuating 24/7, so it can be hard to calculate the exact percentage of what each currency is and how much you'll get out of the exchange. This video is very helpful and different because it get straight to the point and explains fluently how to use the foreign exchange. It also gives insight to when the currency rates are updated and when to expect currency rates will change, helping the viewer like myself to predict when they shouldn't be exchanging if they plan on going on a trip soon.

Video #2

lucasmcdonald1_2 — 2025-04-14 00:29:09 UTC

This video talks about the conflict between Canada and the U.S. and the ongoing tariff war. The back and forth has cause a lot of comradely and has cause a lot of global stress and worry of an economic reset, which could plummet the value of not just these two countries dollars, but others as well. This video is different because there's lots of question going through everyone's head, but the video answers them. Even though its a very stressful subject to go on, its better to know and be educated then to be oblivious to what's going on in the world right now. It talks about what can also happen after the tariff war giving insight what to expect in the coming years. I learned from this video that the U.S. and Canada have had bubbling conflict since the 1800's, but that tariffs have also only never been this high, ranging from 22% to 145%. This gave me insight on why some things I order online from foreign countries might be so expensive.

Video #3

lucasmcdonald1_2 — 2025-04-14 00:38:02 UTC

This video talks about the impact and risks of foreign exchange rates. The main thing that is risky with exchange rates is fluctuation after trading. For example, if you moved to the U.S. and bought a house in December, but only completed the move in February fully, if you exchanged your money the three months later, your Canadian value would have gone down by a lot. The dollar has dropped 8% since 2024, so let's say the dollar dropped 3% since you moved to the U.S., if you transferred 700,000 into USD, instead of getting 504,000 you would only get 460,000, losing 40 thousand dollars in value due to inflation and economic events, foreign exchange is very risky. I found that learning about the risks of foreign investment expanded my learning on the U.S. dollar because I've always thought about moving to the US in the future, so it was good for me to be aware of the risks.

lucasmcdonald1_2 — 2025-04-14 00:51:59 UTC

This video talks about how the tariff war may seem like it will just affect the other countries, but in reality Trump is just sabotaging his own country. Let me explain. Canada gives a lot to the US, like, a lot. From wood to electricity to oil and fur, Canada provides the US with a lot. This video says that with Canadas retaliating tariffs, the prices of gas, food, water, lumber will go up. Meaning, Americans everyday items will sky rocket in price, leading to a worse economic morale and growth and value. I liked this article because it shows not just the negative side of what's happening to Canada, but also what the US is doing to itself by trying to stab our country in the back.

Reflective Question

lucasmcdonald1_2 — 2025-04-14 00:59:29 UTC

The thing I learned about this topic is HOW MUCH affects the economy. Things from unemployment rates to how much wood was exported can change the entire value of our dollar. It really shows how our society makes up so much of the value of our dollar as much as the normal person might think its just about buy sell, it's about how much effort the citizens of our country are putting into the work force to give back into the country's value, because if the citizens aren't doing well, neither will the country, which will reflect in their value.

A real life event is me wanting to move to Florida. It's been an idea for a while, but learning how much the money of Canada can fluctuate, it seems like a harder idea due to my currency exchange being a lot lower now then it would have been say a year ago. Now, obviously over times things will change and can get better or worse (hopefully better) but it really shows me how things in the economy can change in an instant, regardless of what your dreams are, the economy and world doesn't wait to plummet.

I think the most important thing to share with my friends and family members is to always be prepared. The economy will rise and fall no matter what, so don't put all your eggs in one basket, make more eggs and more baskets and be diverse with everything you do, so when one basket breaks you have so many others to rely on.