Bank issued Canadian dollar 10000 DD at CAD1 = 50.5055. after few days,
the purchaser requested for cancellation of DD, at that time
Inter-bank USD rate was ₹65.5045/6070
USD/cad rate was USD 1= 1.3205/3225
Exchange Margin 0.10%
On cancellation of DD, what is gain or loss of customer?
Solution:
When purchasing from bank means, Canadian Dollars are selling by banks, for 10000 CAD, customer will pay 505055(without margin) and with selling margin(.10%) = 505560.
On Cancellation: Banks will buy Canadian dollar, but in this question domestic currency is not given, that's why I am using INR as domestic currency. we must derive rate by cross rate mechanism (CAD/INR), we will not use rate at purchasing time.
Customer spends for 10000CAD demand draft= 505560
on Cancellation of that DD received only = 494812.69
hence loss occurs of Rs. 10747.31(approx)
Inter-bank USD rate was ₹65.5045/6070
USD/cad rate was USD 1= 1.3205/3225
Exchange Margin 0.10%
On cancellation of DD, what is gain or loss of customer?
Solution:
When purchasing from bank means, Canadian Dollars are selling by banks, for 10000 CAD, customer will pay 505055(without margin) and with selling margin(.10%) = 505560.
On Cancellation: Banks will buy Canadian dollar, but in this question domestic currency is not given, that's why I am using INR as domestic currency. we must derive rate by cross rate mechanism (CAD/INR), we will not use rate at purchasing time.
Customer spends for 10000CAD demand draft= 505560
on Cancellation of that DD received only = 494812.69
hence loss occurs of Rs. 10747.31(approx)
Yes; You are right, The USD to CAD exchange rate touches every aspect of economic life in Canada. Obviously, if you own US dollars or own assets (like stocks or real estate) that are US-based then their value in Canadian dollars is impacted by the changes in exchange rate. And needless to say that if you are a company importing from or exporting to the US, then it very much matters to you how much the US dollar is worth in Canadian dollars because it will determine how much you will have to pay or get paid for your imports and exports.
ReplyDeletehttps://www.interchangefinancial.com/usd-to-cad/
In many cases, those technologies involve Fintech and Payment tech but sometimes they also include enduring technologies such as paper fiat currencies. So, whatever your currency exchange needs, we believe we have a solution for you.
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