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fiatboy
Administrator
912 Posts |
 Posted - 01/11/2008 : 18:26:30
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This overlaps economics and numismatics, but since it involves exchange rates, I'm puting it here.
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Canadian Politician Urges Rejecting U.S. Coins
By Doug Andrews
December 12, 2007
Canadian businesses should refuse to accept United States coins in payment for goods and services, says Toronto city councilor, Howard Moscoe. The value of the Canadian dollar has surged to a premium over its American counterpart for the first time since 1976, and traded as high as $1.10 in early November.
The veteran municipal politician noted, "I know that when I am in the United States, merchants will not accept Canadian coinage. Why should they? Canadian merchants until now have not made the distinction." Moscoe, the former chairman of the Toronto Transit Commission, publicized a letter he had written to the city treasurer requesting that all municipal agencies and concessions in Canada's largest city stop accepting U.S. coins. His stand was picked up by Canada's national wire services and was widely reported on Internet news sites.
Since September, the exchange rate between the United States and Canadian dollars has been particularly volatile, with swings of more than 1 cent not uncommon on a day-to-day basis. While the U.S. dollar was falling against many major foreign currencies for most of 2007, both the Bank of Canada and the Canadian minister of finance issued statements in mid-November warning of dire consequences for Canadian exporters if the steady rise of the loonie did not level off. Money markets responded almost immediately, causing the Canadian dollar to settle just above parity with the greenback.
The Royal Canadian Mint indicates that they have not been contacted by either Moscoe or the Toronto Transit Commission. "I have inquired with a couple of our key departments, and there has been no discussion specifically on this issue, to the best of my knowledge," according to RCM spokeswoman Christine Aquino. She adds that Canadian merchants have the option to accept or refuse payment offered in foreign coins or notes. "According to the Currency Act (of Canada), a US coin, or any other foreign currency is not legal tender in Canada."
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"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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Canadian politician urges rejecting of U.S. coins
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