Voyageur 136
The FX Trade Can Wait When You Move South, and Canada Goes Mineral Shopping With Japan.
News for residents of the “11th province”: Canadians abroad.
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The FX Trade Can Wait When You Move South
Moving to the U.S. does not automatically mean you need to turn each of your Canadian investments into U.S. dollars. MoneySense says the first question should not the exchange rate, it ought to be what kind of account you are holding, which tax system now has a claim on it, and whether Uncle Sam sees your Canadian fund as a PFIC. We imagine all of that is about as fun as it sounds to sort out.
The planning is relevant, however, for Canucks who leave with RRSPs, TFSAs, non-registered accounts, brokerage accounts, and the like sitting back home. A quick currency swap can lock in an ugly CAD-USD move, but doing nothing can also leave you with U.S. reporting headaches, trading limits, or tax treatment that might be less-than-pleasant.
Sometimes the boring answer is the useful one, so take the time to sort your accounts before you make the currency trade.
Read more: MoneySense
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A photo from the old country:
Canada Goes Mineral Shopping With Japan
Canada's biggest business mission to the Indo-Pacific came home from Japan with more than $1.7 billion in commercial deals, but the most interesting piece may be the mineral stockpile.
Reuters says Ottawa and Tokyo are in talks over joint mining projects, offtake agreements, and stockpiles for graphite and gallium. Japan wants to reduce its dependence on China, Canada wants Asian buyers for the stuff it keeps saying is going to power the future. As it happens, Japanese giant Mitsubishi is already deep in LNG Canada in Kitimat, so there’s a very Pacific Coast flavour to the whole pitch.
This play is Canada continuing to try and look less trapped between Washington and Beijing. The old country has spent months talking about trade diversification but finally in Japan, numbers are being attached to the talk.
Read more: MINING.COM / The Globe and Mail