No doubt about it, it's a cheap time to study abroad in Canada! Right now the US dollar is at its highest against the Canadian dollar since September 2010, at 1.06. Meanwhile, the euro to Canadian dollar exchange rate is at 1.38, the highest since November 2011. What this means is that, for you, when you exchange currencies, you'll receive far more Canadian dollars.
Why is the exchange rate so good?
So, how come there's such a great opportunity for you here? Well, it's because Canada's economy is slowing, which makes the Canadian dollar cheap as chips. Canada expanded just +0.1% in April, which drove up currencies like the US dollar and euro, and brought down the Canadian dollar.
Furthermore, you can expect the exchange rate to get better, so long as Canada's economy keeps slowing. For example, the IMF just cut its forecast for the Canadian economy next year by -0.2%, which may weaken the Canadian dollar further. So, yes, it's a cheap time for you to study in Canada, but it could soon get even cheaper!
Given this, if you decide to study in Canada, how can you make sure you get the most Canadian dollars possible? Here are 3 tips to help you:
1. Keep an eye on the exchange rate.
Like it or not, the foreign exchange market is volatile, and the exchange rate available one minute will be gone the next. You must keep an eye on what the Canadian dollar is doing, or at least ask someone to watch it for you. Speak to a foreign exchange broker, and you can ask them to contact you when the exchange rate is best.
2. Don't buy your Canadian dollars at the last minute.
This is worst thing you can do if you want a great exchange rate. After all, it means you'll be stuck with whatever exchange rate is available, even if it's bad. Far from getting the most Canadian dollars you can, you'll have to accept what you're given. Instead, buy your Canadian dollars in advance!
3. Get confirmation that your transfer has gone through.
Of course, you'll want to know the moment your money arrives in Canada. It's a stressful thing, after all, sending money from one country to the next. To give you peace of mind, ask for a confirmation when your transfer is finished.
To find out when you can get the best Canadian dollar exchange rate, sign-up for Pure FX's free newsletter today. We'll send you an email the moment the best exchange rate becomes available.
Peter Lavelle is a currency dealer at foreign exchange broker Pure FX. To learn more about getting the best exchange rate when you study abroad in Canada, email him at peter.lavelle@purefx.co.uk.