How to hedge exchange rate?

[LatLongJohn]

Originally Posted by LJY

An update for those who used Everbank:

I just completed the last exchange request from USD to CAD this week. It looks like the cheapest way to get money from Everbank to ETI is via wire for $30 USD (I was told $15 for a manual check when I signed up). And, we can request the wire transfer from the web site.. very easy.. just slightly more costly than originally planned.

p.s. remember to wire in CAD currency

Thanks for the "heads up". I've got all my funds in place at Everbank to pay ETI as well as TradeMasters - just waiting for our trailer now. I'm hoping to get moved up from the August 21 date we have now.
John

[thoer]

Our full wire payment from EverBank to ETI will be happening Monday or Tuesday. When I first opened it, they told me $40 for the wire, but when I just asked they said now that it is already in CAD and being paid on CAD that it is only $30 like LJY has said.

It has been really easy to set up the transfers from my credit union into the EverBank money market - that got decent interest - and then whenever I thought the exchange rate as in my favor, to move it into the CAD WorldMarkets account a bit at a time.

[Little Richie]

Originally Posted by barry

I have a US dollar account at the Credit Union I deal with down the road, can those in the US not open a Canadian dollar account at their local bank or Credit Union and hold the money their until needed?

Barry

I have not read all of the comments. I have successfully "hedged " my $CD exposure.

While traveling I opened a USD account at a TD US branch in Maine. I then had to make a cross boarder trip go a few hours to open up a foreign owned CD account. (There are several US forms to fill out, including a W9. I should note that I opened a NON-INTEREST BEARING ACCOUNT. This is important! I then moved the money through TD and had them do the conversion.

There are not many options HSBC offers expat type services, but requires large balances. This is the best I found.

[Steven M]

FWIW I wire transferred from my credit union in USD this past Wednesday afternoon. The cost was $25 and took two business days to reach ETI. In between the CDN had risen approx .005 which raised the cost in USD. Paid the difference over the phone with a credit card that doesn't charge conversion. YMMV

[Bobnjudy]

We're going up to tour ETI next week and ask about declaring $. If we each carry less than $9K USD checks into Canada will that get us through without declaring it? Is the declaration amount per individual or a total per traveling couple? Thanks.

[gbaglo]

Why don't you want to declare the money? They don't care how much you have. They only require you to declare if you have more than $10,000. On the show Border Security, a Hollywood producer declared more than $400,000 he was bringing in for a film.
If you don't declare it, it can be seized.

[cpaharley2008]

That amount for declaration is for "cash" when crossing the border, you can carry your checkbook with you without having to declare what your balance is, whether it is $5 or $50,000.....

[gbaglo]

Originally Posted by cpaharley2008

That amount for declaration is for "cash" when crossing the border, you can carry your checkbook with you without having to declare what your balance is, whether it is $5 or $50,000.....

Doesn't matter anyway, unless it's proceeds of crime.

[Bobnjudy]

Understood that "cash" also includes a bank check. The Q is, if each of us (individuals) carries a check for $8k, will that have to be declared or is it the total of $16K because we're a couple?

[cpaharley2008]

A check is a check, so a check payable to Escape for $20,000, certified or bank draft is still a check. Even a check payable to cash, is still a check. Checks are traceable, cash is not.

[gbaglo]

One of you carries the money and declares it. That's all that needs to be done.
Just happen to be watching Border Security where guy doesn't declare gold bar worth $2,200 and that he has $11,000 in cash.
Cost him $250 fine for the cash and then he had to apply and pay fines to get the gold bar back.
It's just a piece of paper that you have to fill out, so why not just do it?

[cpaharley2008]

If you are putting a deposit down or even making full payment, just write a check, when you get there, it does not have to be a bank check unless you want to take delivery that day.

[float5]

We understood that a cashier's check is considered cash. You can call the border and ask. Can't tell you about per person.

Edit: $10000CAD is now $7644USD
Yes, they are including checks in that (as a monetary instrument under the $10000 CAD limit) such as bank drafts or traveler's checks.

[gbaglo]

Please read Canada Border Services information on carrying money.

Travellers - Travelling with CAN,000 or more

[thoer]

I'm having trouble understanding why folks would want to risk a crime and not tell the border guards what you have. A quick explanation or the form Glenn mentioned stating that you are paying for a trailer at Escape is all that would be required.

[float5]

They just want to know what they can take and not have to declare. If you have to declare something, you could be waved on through. Or not. And believe it or not, people forget a lot of things they have. They intended to declare them but forgot. Really.

[gbaglo]

Not sure I would forget that I was carrying $20,000.

[float5]

Canadian or American?

[ReagentGrade]

Originally Posted by Little Richie

I should note that I opened a NON-INTEREST BEARING ACCOUNT. This is important!

Little Richie, why is the non-interest bearing account important?

[Bobnjudy]

On USAA site it has where they can wire transfer to a business outside the US in their currency. $35.
Also, re. the non interest account; it's because of newish international reciprocal income reporting arrangements. Any $ earning interest/dividends outside the US will be reported to the IRS. Offshore accounts are becoming more exposed to taxing entities.