MTFX

T he Canadian dollar and the US dollar share one of the most closely watched currency relationships in the world. For businesses that buy or sell across the border, even a small shift in the CAD to USD exchange rate can mean the difference between a profitable quarter and a painful loss. Understanding how exchange rate volatility works, and how to manage it, is no longer optional for Canadian businesses. It is a core part of financial strategy. The CAD-USD Relationship: Why It's So Consequential Canada and the United States are each other's largest trading partners. The vast majority of Canadian exports, from oil and lumber to automotive parts and agricultural products, are priced and settled in US dollars. On the import side, Canadian businesses routinely purchase American machinery, software, raw materials, and consumer goods, again in USD. This creates a structural exposure. At any given time, the CAD to USD exchange rate is doing one of three things: helping you, hurting yo...