Anyone who is interested in the economy will know that the United States and Canada have been the largest trade partners for a long time. There is a lot of trade between the two countries. Why is Canada not accepting U.S. dollars?
- Confidential Transactions
You should be aware of the implications when performing transactions and private contracts.
- The Currency Act states:
“Every contract, sale and payment, as well as any bill, note, instrument, or security for money, and all transactions, dealings, matters, and things relating to money, or involving the payment or liability to pay money, shall be executed, entered into and done in the currency of Canada.”
However, the section also contains an excellent statement that states, “Unless it is made, executed or entered into, done, or carried out using the currency of another country than Canada.” In simple terms, you can use other currencies in private transactions. However, they must be selected primarily by the government.
There are however many places where the U.S. Dollar is accepted in Canada. The U.S. Dollar is accepted in Canada by hotels, gift shops, restaurants, and other associations related to the tourism industry. These industries also benefit from a natural exchange rate for customers/users.
U.S. dollars are used in many corporate and official transactions.
- Effect on Out of The Boundary Businesses
In order to avoid border dealings, it is important to consider the possibility of recognizing both currencies in their proper places. Recently, the U.S. dollar’s power compared to its Canadian counterpart has prompted Americans to increase their investment in Canada. The tourism industry noticed an increase in American tourists. Many Canadian businesses also own American assets.
Entertainment and sports are also affected by the duality of currencies. Canadians are dependent on hockey, so there is always the possibility that some teams could be moved to the U.S. (which has already happened with the Winnipeg Jets in 1990 and the Quebec Nordiques back in 1990). This is because while teams make money from ticket and merchandise sales, they pay their players in U.S. Dollars.
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