Iceland considering switch to Canadian dollar?

[fansubs_ca]

http://www.ctv.ca/CTVNews/TopStories/20 ... ie-120302/

Interesting idea, Iceland really is too small to be having it's own currency anyways and it
_still_ hasn't regained free tradeablity. Using an outside currency would remove that
impediment to trade and at the moment the Canadian Dollar looks like a not too bad
choice.

Of course some people in the comments are reading way too much into the idea, no
real need or benefit for either side in absorbing them poilitically. (Canada _really_
doesn't need a 3rd official language. ^_-) No need for them to have influence on our
policy either. I do wonder where Iceland's government would come up with the forex
to "redeem" all their currently issued currency for CDN$ though.

[henrysmedford]

There has been a study done on Dollarization of Canada with the US dollar http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cts=1330747096727&ved=0CEEQFjAD&url=http%3A%2F%2Fwww.bankofcanada.ca%2Fwp-content%2Fuploads%2F2010%2F01%2Ftr90.pdf&ei=yJZRT46jG-vaiQLUw-W0Bg&usg=AFQjCNGr8LknhwlBE2VBYWyVmlN9Wrf8gg&sig2=pYPuqTlSAWgoI11TMYaD-Q.
From http://en.wikipedia.org/wiki/Dollarization#Countries_using_the_U.S._dollar_exclusively
Also the US dollar is used in --
Countries using the U.S. dollar exclusively

British Virgin Islands
Caribbean Netherlands (from 1 January 2011)
East Timor (uses its own coins)
Ecuador (uses its own coins in addition to U.S. coins; Ecuador adopted the U.S. dollar as its legal tender in 2000. [43]
El Salvador
Marshall Islands
Federated States of Micronesia (Micronesia used the U.S. dollar since 1944 [44])
Palau (Palau adopted the U.S. dollar since 1944 [45])
Panama (uses its own coins in addition to U.S. coins. This country has adopted the U.S. dollar as legal tender since 1904). [46]
Puerto Rico
Turks and Caicos Islands

Countries using the U.S. dollar alongside other currencies

Bahamas
Nicaragua
Cambodia (uses Cambodian Riel for many official transactions but most businesses deal exclusively in dollars)
Lebanon (along with the Lebanese pound)
Liberia (was fully dollarized until 1982 the year the National Bank of Liberia started to issue five dollar coins [47] ; U.S. dollar still in common usage alongside Liberian dollar)
Zimbabwe
Haiti uses the U.S Dollar alongside its domestic currency called "Gourde"

[Cu Later]

i see it now, were going to have to kill their "terrorist"
leader, than invade their country, for their best interest.
"WE CAME, WE SAW, Hillary Clinton style...

[Engineer]

i see it now, were going to have to kill their "terrorist"
leader, than invade their country, for their best interest.
"WE CAME, WE SAW, Hillary Clinton style...

Nah...we only do that when they threaten to go on the gold standard.

[silverflake]

Maybe Iceland could trade gold and silver for Canadian dollars. Or Cod. Or music by Bork.

Actually the gold and silver seem like a good idea. Canada would bolster it's PM holding thus indirectly strenghthening it's money.

[fansubs_ca]

Maybe Iceland could trade gold and silver for Canadian dollars.

Do they even have a noticeable amount of gold or silver? I imagine they are in the same boat
as most countries in that regard if not worse.

Or Cod.

Reminds me of a cartoon I once saw:
http://www.alexcartoon.com/cartoons/5138_13102008.gif

[nero12345]

Maybe Iceland could trade gold and silver for Canadian dollars.

Do they even have a noticeable amount of gold or silver? I imagine they are in the same boat
as most countries in that regard if not worse.

Or Cod.

Reminds me of a cartoon I once saw:
http://www.alexcartoon.com/cartoons/5138_13102008.gif

Canada holds 3.4 tonnes of silver approx. we have massive gold and silver mines but the govenment sold quite a bit of their bullion stock pile trough the years.

[frugalcanuck]

Maybe Iceland could trade gold and silver for Canadian dollars. Or Cod. Or music by Bork.

Actually the gold and silver seem like a good idea. Canada would bolster it's PM holding thus indirectly strenghthening it's money.

What would the Canadian government do with PMs? You cant really build prisons with silver and gold.

The Canadian dollar is being held back by the Bank of Canada keeping rates low. A high CDN dollar is bad for Canadian exporters is what they say.

[fb101]

What is that about?
Why don;t they jump on the U.S. Dollar??!!!

Oh yeah.
They've already been that route recently........

[fansubs_ca]

Canada holds 3.4 tonnes of silver approx. we have massive gold and silver mines but the govenment sold quite a bit of their bullion stock pile trough the years.

What I meant was does _Iceland_ even have a noticeable amount of gold or silver? After
all at the moment _they_ are the ones that need something to trade.

[silverflake]

Cod, fellas, cod! Come on! Think about it - cod are a tangible commodity, nothing fishy about it. AND, you could freeze them and segment them into smaller denominations. Or cash in, say, 10 cod for a tuna. But you know what would happen. Pretty soon the government would start inflating by printing paper cods. Then they would unpeg the paper currency from the real cod. Before you know it, it would take a million paper cod to by one real cod for dinner. Ah, such a fish story...

It's been a long week. Please accept my attempt at humor. It was meant as hook in cheek...er...toungue in cheek.

By the way, what do you all think of the Australian dollar?

[Engineer]

By the way, what do you all think of the Australian dollar?

They should back it with Kangaroos.

[fb101]

By the way, what do you all think of the Australian dollar?

They should back it with Kangaroos.

Or tasmanian devils.

[henrysmedford]

"silverflake" By the way, what do you all think of the Australian dollar?

They are both (Canadian and the Australian dollar)are both Commodity currency. See http://www.imf.org/external/pubs/ft/fandd/2003/03/cash.htm so I have read of coal prices are up so is the Australian dollar. But that is all I know as I am a 50 year old dad just trying to pay the bills.

http://en.wikipedia.org/wiki/Commodity_currency