CDN dollar vs USD is affecting your online business?

October 4, 2007

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Less Money to Canadian Adsense publishers

It seems that canadians are not only being affected by the US in business but also in Adsense. Many publishers have been posting on forums and blogs about this issue.

We receive less from AdSense in Canadian dollars; but Adwords, of course, cost less in Canadian dollars for those who use them.

This ship has been sailing for a long time. It is hard to believe that a Canadian dollar that was only 62 cents against the American dollar in 2002 is now of equal value. Many economists believe that it is perched to go much higher - possibly 1.05 in the fairly short term.

Of course, the increase in the value of the Canadian dollar is just a reflection do the relative strengths of the two economies. The Canadian economy is going full bore - especially in the west.

I believe the Euro also just reached a record high against the USD. In fact, most currencies have also been rising against the USD.

Consequently, declining exchange rates are a problem being faced by most non US publishers.

But in other point of view, Canadian adwords advertisers are paying less for their PPC campaigns. But adsense publishers are not the only affected about this. Also e-commerce sites will start (or started) to make prices highers because some e-commerce sites customers are from the US so they pay via USD and receive the payment via USD, and when they exchange from USD to CDN here you see the difference. Some others e-commerce site owners have a policy to accept only CDN:

This year the exchange rate has gone from around .85 to 1 even. This makes me glad that we decided on a policy of only taking payment in CAD funds this year, otherwise I’d be looking at a nearly 15% loss by the end of our summer season. We still listed USD prices (and other currencies) but noted that they were subject to market fluctuation — with the Canadian dollar price being the real cost.

The importance of the CAD$ price decision was illustrated this week when we had an elderly gentleman who insisted that he had to pay us with a USD cashier’s cheque. In the week it took to reach us by snail mail, he ended up owing us $274USD more because the rates had changed. I wasn’t about to absorb the loss, and luckily he was able to understand what had happened.

We’re headed on a road trip to Utah, never been a better time to go! Today $50USD cost me $50.90CAD. Diesel is something like $.75/L in many places down there instead of $1.01/L, food is inexpensive as well.

I guess this is a little off the posted ‘Adsense Loss’ focus, oh well. Just glad to see the US dollar plummeting… Maybe this is the start of the Big Crash? That’d be just fine.

Some US economist say that the USD would likely lose another 50% of its value before it turned around. From my side, I am happy because I have invested in Gold since 2003.

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