Recent trends in the use of money The history of the Canadian dollar relative to its US counterpart Why is the Canadian dollar - Research Paper Example

Download file to see previous pages... This focuses on the conversion of properties or money that one acquires unlawfully into a country’s money system. Several countries use their money to fund criminal activities such as terrorism to reduce the strengths of other countries’ currency especially through the destruction of markets. The aim of all unlawful acts is to generate financial gains. Consequently, the availability of the working capital is vital for the sustainability of the criminal and terrorist networks. For instance, the criminal tendencies such as the allocation of narcotics and arms require an international network that consists of marketers, manufactures, transportation, and personnel. The criminals receive pays in cash lest their activities are recognized through transaction records. Criminal activities focus on the utilization of money using various approaches. For instance, such activities use cash through the primary phases of money laundering such as placement of the criminal processes within fiscal systems, layering money to hide original sources of the criminal activities, and incorporation into lawful economic markets like banks (Weld 1). The major criminal activities such as drug trafficking generate significant proportion of resources that boosts the country’s economy after integration into the legal markets. For instance, illegal tobacco business generates revenues of about 40.5 US dollars in the US. Some criminals especially terrorists do not integrate their money through the legal market systems because they can easily be traced. Consequently, they use the ethnic-based cash service enterprises such as those who operate travel agencies to launder funds. Additionally, such illegal businesses can reduce a country’s revenues. For instance, other recent criminal money use entails the use of fake money to get the legal currencies. This contributes to the reduction of the strength of the countries’ currencies. Other money laundering acts entail infusing unlawful money into the football sectors. These sectors are very attractive to criminals especially persons who intend to use their unlawful money (Weld 1). The history of the Canadian dollar relative to its US counterpart In 1971, the total exchange rate of the Canadian dollar against the US was approximately 1.22. The highest Canadian rate during this year was 1.60 while the lowest was 0.96. Between the 1971 and 2011, the lowest exchange rate of the Canadian Dollar against the US was in 1974. During this year, the average Canadian rate against the US was 0.98. Between 1971 and 2011, the highest exchange rate for Canada dollar was 1.57. This was in the year 2002 (Hummel 1). The current 12 month forecast of the Canadian and the US dollar indicates that the exchange rate for the Canadian dollar will be approximately 1.00 Canadian dollars to the US Dollar in future. This is because the coinage trend shows that the exchange rate can easily fall by 0.04 percent implying that the Canadian currency rate would be 0.94 by November 2013 (Hummel 1). The exchange rate for the Canadian dollar in the year 2012 was approximately 0.99 in October. That is 0.7 point higher compared to October 2011. By September 2012, the rate escalated by 1.04. According to some economists, this is a minor movement, and if it continues, the immediate trend would be comparatively flat. The one year shows that the country’s exchange rate was 1.00 averagely. Moreover, the standard conversion rate of the last 10 years was 1.14. Reports also show a higher ...Download file to see next pagesRead More