Should there be a push to make establishments accept Canadian money in Detroit?

[Hermod]

Bermuda has their currency pegged to the US dollar. What would be the implications for Canada to do that? Would it limit their budgetary and fiscal practices?

[Canadian Visitor]

Bermuda has their currency pegged to the US dollar. What would be the implications for Canada to do that? Would it limit their budgetary and fiscal practices?

Starting by saying I'm not a FOREX expert.

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However, the Canadian Dollar was pegged to the USD for much of its history, with a few intermittent breaks. Typically at about US$1 = CDN$1.10 though it was set to parity for a time as well.

Its been floated since 1970.

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Pegging can only be done if a Nation has large FOREX reserves, particularly of the country you wish to peg to.

Canada currently has about $77B in reserves total, which I suspect, as a non-expert is far too low for that sorta thing.

Reserves of course can be amassed, but there are risks associated w/this, notably inflation.

I'm not sure that Canada would accrue a substantial advantage at the moment seeing as the dollar is trading in the range of .80c to the USD.

That should be reasonably attractive for exporters and tourism while still having reasonable buying power in the US market.

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Merging the currencies has been periodically discussed at the highest levels, but would be seen here as a loss of sovereignty and thus not particularly popular.

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Should add, the latter and/or pegging might cause some international issues, as the Cdn Dollar is now the 5th largest reserve currency in the world. [[Though...at only about 3% of global reserves, maybe not)

[Király]

I'm not sure that Canada would accrue a substantial advantage at the moment seeing as the dollar is trading in the range of .80c to the USD.

The inverse tripped you up; the Canadian dollar is at $1.25 to theUSD