May 30, 1940 (19th Parliament, 1st Session)


Mr. RALSTON: (Minister of Finance and Receiver General)


1. Note-The so-called free market for Canadian dollars in the United States simply represents scattered transactions between nonresidents, when a non-resident may happen to have Canadian dollars to sell. Wide fluctuations in rates take place and it is difficult at any time to establish an accurate measure of prevailing rates as the volume of transactions of this kind is relatively small. In these circumstances the rates published by the federal reserve bank of New York probably represent the best approximation of prevailing rates based on the comparatively small volume of transactions of this kind.
Exchange rates in the so-called free market referred to above for Canadian dollar and British pound in New York, as published by the federal reserve bank of New York:
Exchange rate for British
Canadian British pound in dollars pound Montreal
Sept. 1, 1939... 95-625 4-21 4-4625Oct. 2, (( 88-875 4-015 no free marketNov. 1, (( 89-625 4-00 UDec. 1, (( 86-9375 3-895 (tJan. 2, 1940... 88-625 3-955 UFeb. 1, (( 87-4375 3-96 itMar. 1, (t 86-125 3-93 liApr. 1, (( 81-50 3-56 uMay 15, U 81-8125 3-24 u2. Foreign exchange control was not instituted in Canada until September 16, 1939. The official rates set by the foreign exchange control board on that date were as follows: Sterling-4.43 buying-4.47 selling United States dollar-1.10 buying-1.11 selling
which is equivalent to quotation of 90.91- 90.09 for the Canadian dollar in the United States.
These rates have not been changed since September 16, 1939.

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