As a matter of patriotism rather than merely diminished opportunity, American traders in the foreign exchange (FOREX) market are often disappointed when their favored greenback loses value against its rivals. This is especially true if the rival currency is the Canadian dollar. Unifying the Canadian dollar and the American dollar will forever eliminate this concern. Here are ten reasons this may be an idea whose time has come.
1. Continental Partners: The USA and Canada share a continent as well as a coast-to-coast border, making them natural partners and facilitating easy trade.
2. Trading Partners: : The countries are, in fact, each other’s largest trading partners, while the USA is the world’s largest economy. Both are members of the powerful G8 financial organization.
3. Political Stability: : The two republics are both politically stable democracies.
4. Common Language: : There is no language barrier, as English is the primary language in both countries.
5. Synergistic Gifts: : Canada’s natural resources coupled with American technological leadership will help to ensure that the unified currency will remain the most powerful and valuable in the financial world.
6. Stimulation of Cross-border Spending: : Unification will stimulate rather than stymie cross-border shopping and travel from both sides. There will be no longer be interruptions of these traditions as presently is the case when one currency has increases significantly in value against the other.
7. Successful Model from EEU: : Unification seems to have worked pretty well for the European Economic Union with diverse languages and politics, it will most likely work for two similar countries. After all was said and done, the value of the euro appreciated tremendously against the U.S. dollar since 1999, the year of first issue. Admittedly, this qualifies as a “me to” reason, but not all things European are bad.
8. Globalization: : The world economy is becoming more global, and, therefore, unification of these particular currencies is a giant step in that direction, helping online commerce to grow also.
9. More Effective Collaboration: : Collaboration between the two countries on matters of trade and finances will arguably be all the more cooperative and sensitive to the needs of the respective continental partners.
10. Facilitate NAFTA: : The unification will also better facilitate the effectiveness of existing economic legislation and treaties, including the North American Free Trade Agreement (NAFTA).
Of course, to get any such measure passed will require the approval of two countries via their authorized legislative and regulatory bodies. Additionally, such a massive measure could take years to implement. After many official studies, including the impact on the environment–as in saving trees and lower carbon emissions–perhaps our respective governments can see light in this proposal. Hopefully, the prevailing Canadian attitude will not be, why didn’t the Americans propose that when the currencies were not at parity? Still, it is better late than never.
Sandy Robinson, J.D., Copyright 2007