Depreciating CAD affects Chinese Canadians
CAD has been depreciating against USD in recent few days, which makes RMB much dearer against CAD. Exchange rates among CAD, USD and RMB are having emerging impact on Chinese Canadians.
We heard about overseas Chinese moaning why the recent CAD was so “lame”. Some say they had to trade a large sum of RMB for CAD—about 7 yuan for 1 Canadian dollar—to pay for tuition, house rent, and living bills. Now they work in Canada and have to trade 1 Canadian dollar for just 5.5 yuan.
For those who have to exchange CAD for RMB, the pressure is more than observable. Many Chinese Canadians have parents in China who they should pay alimony in form of periodical or non-periodical remittances. The devalued CAD imposes a larger economic burden.
Some overseas Chinese say the depreciating CAD against USD has effects on their daily life. Many of them send their children to the U.S. for college education or invest in American property market. And the current exchange tendency is not good for them. Some have been watching the exchange rate very carefully during the years of kids’ high education in America, concerned about the burden caused by potentially dearer USD. Cheaper CAD makes young people more inclined to stay in America after graduation or go back to China, rather than back to Canada.