from Amazon
Thursday, May 19, 2011
Currency exchange rates
Another driver against the Expos was the currency exchange rate, something that would benefit them greatly these days. This issue is far more in play in the NHL of course.
It’s not noted by Gabe in that article, but the NHL used to have a “currency matching program” of sorts for the Canadian teams. When the dollar was at 66 cents, the NHL would guarantee an exchange rate of halfway between that an 1 dollar, and so would bump that up to 83 cents. (I’m hazy on the details, but they did have something like this in play.)
When you think about what the exchange rate SHOULD BE (based on the fundamentals, and not the technicals), it made good enough sense. For example, the exchange rate should be based on what Canadians and Americans were purchasing, and so, the conversion rate should be based on that (insofar as to what it means to a sports team anyway). And I remember at the time reading that the exchange rate based on product purchases should have valued the Canadian dollar at 84 American cents.
I’m not sure what it should be valued at now based on this component. Indeed, if it’s still 84 cents, then the Canadian teams are really doing well (i.e., lucky that the exchange rate is where it is).
Recent comments
Older comments
Page 1 of 344 pages 1 2 3 > Last »Complete Archive – By Category
Complete Archive – By Date