RE:RE:RE:Canadian $ continues to Rocket up...How does this affect CVEI think you are correct.....I think there's an error in the Guidance. I think you are correct and that it should be $C/$US.
Just guessing.
All just my opinion/view/thinking/guessing
RagingBull3 wrote: I'll give it a stab in understanding.....
US$/C$ = 0.78 if the rate INCREASE one cent to 0.79.....lets figure it out.
1 US$ / 1.2812C $ = 0.78
1 US$ / 1.265 C$ = 0.79
So rate increases when the C$ decreases. But the Canadian $ been increasing which would make the Rate go smaller/decrease.
Based on the column under "Decrease" that would mean +$100. which is the opposite to what you are saying.
But if you think about it, if they sell in US $ and US$ goes down relative to C$ then exchanging to C$ means you get less C$....Correct???? Which would make your interpretation correct I think.
Anyways, that's my stab at trying to understand.
All just my opinion/view/thinking/trying.
Margin321 wrote: The January 28,2021 guidance gives the sensitivity to the exchange rate. The $C to $US was 0.78 on that date.
They stated that a 1 penny change increase resulted in $100 million a year decrease. A one penny decrease resulted in a $100 a year increase.
With the rate at .82 right now that would mean a $400 million loss since the results are reported in $C.
It is a little confusing (to me anyway) because they give the number 0.78 as the $US to $C exchange rate and then say in the table that the $100 million per penny change is related to every penny increase or decrease in the $US/$C exchange rate.
It seems that they are talking about the $C/$US exchange rate, and not the other way around.
Maybe someone can explain that to me.