Features
The Zylbermans look back on 25 years of having come to Winnipeg from Argentina
By BERNIE BELLAN While there has been a large influx of Jewish immigrants into Winnipeg over the past 25 years, perhaps one of the most interesting stories of how one family made the decision to come here is the Zylberman family’s – when one learns how much their decision to come here was totally a matter of chance.
Mauricio and Marta Zylberman, along with their three children: Ariel, Leandro, and Melina, arrived here in 1997 – during one of the worst snow storms in Winnipeg history, and just in time for what became the “flood of the century.”
But how the Zylbermans ended up in Canada – and a city about which they knew almost nothing at the time, is quite a fascinating tale. Although their decision to come here was taken somewhat arbitrarily, the Zylbermans quickly established strong roots in the community and have been deeply involved not only in Jewish life, but many other aspects of life in Winnipeg as well.
The story begins with a turbulent period in Argentina’s history, when the economy was cratering and Argentina was about to enter into a period that is now referred to as the “Argentine Great Depression,” which lasted from 1998-2002. Prior to that period Argentina’s economy had stagnated severely. Not only that, Buenos Aires, which is where the Zylbermans lived, had become a dangerous place where, as Mauricio Zylberman explains, the “corruption” and crime were terrible.
He says that every night, when he would come home from work, he “would have to drive around the block to make sure no one was waiting for me before I would get into my house.”
And yet, as Marta Zylberman describes their situation at the time, “we were very successful.” Their wanting to leave Argentina, she observes, “wasn’t about money. We were trying to get a better future for our kids,” she notes.
I asked them what they did in Argentina. Marta says she was a “stay at home mom and Mauricio was an accountant.”
The two boys were teenagers in 1997; Ariel was 16, Leandro was 14, and Melina was 11. Mauricio and Marta were themselves already in their 40s, so picking up and starting over in a new country – without even knowing where they might go, was definitely a challenge not for the faint of heart.
Their first choice was to get a green card for the United States, but “we couldn’t get it,” Marta says.
So, as she notes, in 1996 Marta decided to contact three different embassies: the Canadian, the Australian, and the New Zealand embassies and, as she puts it, “whoever is going to give us an answer, we’re going to go for it.”
“Canada and New Zealand were very welcoming,” Marta says, but “not the same situation with Australia.”
Eventually the Zylbermans were invited to an interview at the Canadian embassy.
I asked Marta and Mauricio whether they were even thinking about coming to Winnipeg at that time? “Was Winnipeg even on your map?” I asked them.
“No,” Marta answers. “We didn’t even know about Winnipeg.” (What eventually would turn into a major initiative undertaken by the Winnipeg Jewish Community Council – later to become the Winnipeg Jewish Federation, to attract Argentineans to Winnipeg had not yet begun.)
“When we put in the application and we were asked where we wanted to go, we said Toronto or Ottawa,” Marta says.
The Zylbermans could have gone anywhere they wanted in Canada because they were approved for visas but, at the end of their interview at the Canadian embassy, Marta says that the woman who was conducting the interview showed them some flyers that she thought might help them in their decision-making process.
According to Marta, that woman said, “You’re not going for an exploratory visit anywhere. But because you are Jewish and you have teenagers, and you are a family of five, why don’t you take these flyers that are related to the Jewish community in Winnipeg, so if you decide to change your mind and you want to go to Winnipeg (instead of Toronto or Ottawa), just let us know.”
The Zylbermans looked at those flyers. Marta notes that the flyers talked about how many restaurants there were in Winnipeg per capita, how many lakes were nearby – but there wasn’t anything about “the temperature” in Winnipeg, and there certainly wasn’t any mention of blizzards !
Mauricio picks up the story at that point, saying that when they got back from the embassy, he was intrigued at the notion of moving to a city with an established Jewish community, one that the individual at the embassy described in glowing terms. That very same day, he says, he sent a fax to the Winnipeg Jewish Community Council (noting that this was before the advent of the internet), expressing an interest in coming to Winnipeg.
Apparently that fax was fielded by Evelyn Hecht, who was the Community Relations Director for the WJCC at the time, and within a couple of hours Mauricio said he received a fax back from someone in the Manitoba government asking how could they help with the Zylbermans settling in Winnipeg.
Mauricio says that it was “astonishing to have an answer back within a couple of hours. I said to Marta, ‘If these people are giving an answer back in a couple of hours, that’s the place we should go’.”
Mauricio points out that the Provincial Nominee Program, which was begun by former Premier Gary Filmon, had not yet been established. It was that program, along with the concerted efforts of individuals such as Evelyn Hecht and Bob Freedman, who was executive director of the WJCC, along with the late Larry Hurtig, a Past President of the WJCC, and the aforementioned Gary Filmon – who all saw the potential benefit of trying to attract Argentinean Jews to Winnipeg that led to a largescale immigration to Winnipeg at the end of the 1990s and in the first decade of this century..
As Mauricio points out, however, when the Zylbermans arrived in Winnipeg that fateful day in April 1997, “there were only three other Jewish Argentinean families that had moved within recent years to Winnipeg.” (Eventually the number of Jewish families or individuals to arrive here from Argentina grew substantially, to the point where the figure of 400 individuals was bandied about as the number of Argentinean Jews who had immigrated to Winnipeg. However, as Mauricio acknowledged during our conversation, many of those individuals used Winnipeg as a stepping stone to eventually relocating elsewhere in Canada. It’s difficult to know exactly how many Argentinean Jews have remained in Winnipeg, but according to the 2016 Census there were only 475 individuals of Argentinean descent living in Manitoba that year. It’s possible that the majority were Jewish, but the fact is that, like most questions revolving around how many Jews actually live in Winnipeg, we really don’t know the answer.)
As I already noted, the Zylbermans didn’t have a clue what was in store for them as far as Winnipeg weather was concerned. For anyone reading this who was here at the time, memories of the blizzard that began on April 5 of that year, and which saw a total of 48 centimetres of snow fall in a 24-hour period are probably still quite vivid (along with the memories of a good part of southern Manitoba turning into one vast lake).
Yet, even before that blizzard began to hit, Winnipeg was already under a heavy blanket of snow. As their plane began its descent into Winnipeg, Marta says “all they could see was white.” She turned to Mauricio and said, “Omigod – what are we doing here?”
But, when the Zylbermans saw the large troupe that had turned out to greet them upon their arrival here, including Evelyn Hecht, along with Roberta Hurtig (who, along with husband Larry, Marta described as their “Winnipeg family”), as well as a representative from Toronto for JIAS (the Jewish Immigration Aid Service), they felt quite relieved.
Another individual who provided invaluable help to the Zylbermans was Gustavo Rymberg, who was a graphic designer working for the YMHA at the time, and who had arrived in Winnipeg just a few months prior to the Zylbermans’ arrival. Gustavo has gone on to forge a successful career working for other Jewish federations in Canada, first in Ottawa, and more recently in Hamilton, where he is now executive director of the Hamilton Jewish Federation.
Marta acknowledges how hospitable members of the Jewish community were when the family first arrived in Winnipeg. “We were invited to so many houses, but it was exhausting,” she says.
“We had to translate in our minds what they were saying – and then put into English what to answer.” (I remarked though that both Marta’s and Mauricio’s English is now quite good.)
It wasn’t only members of the Jewish community who rolled out the welcome mat, Marta adds. She recalls how friendly and helpful many individuals were to her when the Zylbermans first arrived here and she was shopping for such things as winter boots – even for a car.
And, despite the snowstorm that greeted the Zylbermans soon after their arrival, according to Marta, their biggest problem wasn’t getting used to the snow, “the fateful moment was when Mauricio realized that he wasn’t recognized as a CGA here,” which is what he was in Argentina.
I asked the Zylbermans whether they didn’t know that Mauricio would not be able to practice as an accountant before they got here?
“No, we didn’t know anything,” Marta answers.
As Mauricio adds, when they visited the Canadian embassy in Buenos Aires, they were told “the number one thing we need in Canada is accountants.”
Unfortunately, despite Mauricio being fully credentialed as an accountant in Argentina, and having had years of experience practicing the profession there, upon their arrival here he was told “you’re not certified here. Become certified – and you’re good to go.”
Mauricio explains that prior to coming to Canada he had contacted the California body responsible for certifying accountants in that state (and remember – the Zylbermans’ first choice was to emigrate to the US, preferably California) and was told that all he needed to do was take the qualifying exam in that state in order to be licensed as a Certified Accountant. Mauricio assumed that the same rule would apply in Canada, hence his surprise and disappointment at finding out that wasn’t the case here.
As a result, Mauricio says he spent almost four years taking the courses required to be certified as an accountant in Manitoba. He did find work related to his training, he says, but for four years Mauricio explains that he would work from 9-5, then head to Red River College to take accountancy courses in the evening. Eventually he completed the required courses and was certified again as a Certified General Accountant.
As things turned out, the relocation of the Zylberman family to Winnipeg proved fruitful for every member of the family. Ariel, Leandro and Melina went on to spend many years dancing with the Chai Folk Ensemble. Marta and Mauricio became part of the Chai family as a result and made many lifelong friends.
Both Marta and Mauricio have also been heavily involved with the Israeli pavilion at Folklorama. It was there that they met Richard Swyston, Mauricio notes, who has also been a longtime volunteer at the Israeli pavilion. The Zylbermans now count Richard and Gemma Swyston among their friends.
Ariel and Leandro attended Kelvin High School upon their arrival in Winnipeg, and both went on to university here. Ariel was actually a Rhodes Scholar and ended up obtaining a PhD in Philosophy. (I noted that he’s a Doctor of Philosophy who is a real “Doctor of Philosophy”.)
Marta recalls how impressive an achievement Ariel’s becoming a Rhodes Scholar was: “Here he was, not only an immigrant, but a Jewish guy,” she remarks.
Marta says though that unfortunately, Ariel was unable to find work in Winnipeg and, as a result, he is now teaching in the US.
Leandro and Melina, however, have remained in Winnipeg, where Leandro works as a lawyer and Melina as a doctor (psychiatrist).
Marta has also gone on to forge a career in real estate, but she waited until she felt comfortable enough with her English to pursue that career, she says.
At the end of our conversation, I said to Marta and Mauricio what a nice gesture it is for them to thank the Jewish community for welcoming them here. (As a matter of fact, the Zylbermans also thanked the community within the pages of this paper 15 years ago, upon the 10th anniversary of their having arrived here.) I noted though that, considering the Zylbermans’ arrival in Winnipeg coincided with what became the “flood of the century” and, with all the snow we’ve had this winter, I hoped that reminding readers of what we went through 25 years ago wasn’t going to cast some sort of jinx on us – and lead to yet another weather catastrophe.
The Zylbermans, however, insist that for all the harping that people do on the weather here, this is one fabulous city – and despite how arbitrary their decision to come here may have been, it is one that they and their children will always think of as the best decision they could ever have made.
Features
Bias in America’s Colleges Produced Modern Anti-Zionism
By HENRY SREBRNIK Jon A. Shields, Yuval Avnur, and Stephanie Muravchik, professors at the Claremont Colleges in California, have just completed a study, “Closed Classrooms? An Analysis of College Syllabi on Contentious Issues,” published July 10, 2025, that draws on a database of millions of college syllabi to explore how professors teach three of the most contentious topics: racial bias in the criminal justice system, the Israel-Palestine conflict, and the ethics of abortion.
They used a unique database of college syllabi collected by the “Open Syllabus Project” (OSP). The OSP has amassed millions of syllabi from around the world primarily by scraping them from university websites. They date as far back as 2008, though a majority are from the last ten years. Most of the data comes from universities in the United States, Britain, Canada, and Australia.
“Since all these issues sharply divide scholars, we wanted to know whether students were expected to read a wide or narrow range of perspectives on them. We wondered how well professors are introducing students to the moral and political controversies that divide intellectuals and roil our democracy. Not well, as it turns out.”
In the summary of their findings, “Professors Need to Diversify What They Teach,” they report that they found a total lack of ideological diversity. “Across each issue we found that the academic norm is to shield students from some of our most important disagreements.”
Teaching of Israel and Palestine is, perhaps no surprise, totally lopsided, and we’ve seen the consequences since October 7, 2023. Staunchly anti-Zionist texts — those that question the moral legitimacy of the Israeli state — are commonly assigned. Rashid Khalidi, the retired professor of Modern Arab Studies at Columbia, is the most popular author on this topic in the database. A Palestinian American and adviser to the Palestine Liberation Organization delegation in the 1990s, Khalidi places the blame on Israel for failing to resolve the conflict and sees the country’s existence as a consequence of settler-colonialism.
The problem is not the teaching of Khalidi itself, as some on the American right might insist. To the contrary, it is important for students to encounter voices like Khalidi’s. The problem is who he is usually taught with. Generally, Khalidi is taught with other critics of Israel, such as Charles D. Smith, Ilan Pappé, and James Gelvin.
Not only is Khalidi’s work rarely assigned alongside prominent critics, those critics seem to hardly get taught at all. They include Israel: A Concise History of a Nation Reborn by Daniel Gordis, a professor at Shalem College in Israel. Gordis’s book appears only 22 times in the syllabus database. Another example is the work of Efraim Karsh, a prominent historian. His widely cited classic, Fabricating Israeli History, appears just 24 times.
For most students, though, any exposure to the conflict begins and ends with Edward Said’s Orientalism, first published in 1978. Said is the intellectual godfather of so many of today’s scholars of the Middle East, thanks in no small part to this classic book. Said was a Palestinian-American academic, literary critic, and political activist from a prominent Christian family. Educated at Princeton and Harvard Universities, two of America’s most distinguished centres of higher learning, he taught at Columbia University, another Ivy League institution, until his death in 2003.
Said was no crude antisemite. His writings were aimed at academics and intellectuals and he has, in my opinion, done more damage to the Jewish people than anyone else after 1945. Said claimed to be the first scholar to “culturally and politically” identify “wholeheartedly with the Arabs.” But he was also a political activist for the Palestinian movement opposing the existence of Israel.
Said warned PLO leader Yasir Arafat that if the conflict remained local, they’d lose. Join “the universal political struggle against colonialism and imperialism,” with the Palestinians as freedom fighters paralleling “Vietnam, Algeria, Cuba, and black Africa,” he advised.
(In this he was not the first, though. Fayez Sayegh, a Syrian intellectual who departed for the United States and completed his Ph.D. at Georgetown University in 1949, preceded him. Also an academic, his 1965 monograph Zionist Colonialism in Palestine stands as the first intellectual articulation of Zionism as a settler colonial enterprise, arguing that the analytical frameworks applied to Vietnam and Algeria apply equally to Palestine. The treatise situated Zionism within European colonialism while presenting it as uniquely pernicious.)
Israel’s post–Six-Day War territorial expansion helped Said frame Israel as “an occupying power” in a 1979 manifesto titled The Question of Palestine. Alleging racial discrimination as the key motive was a means of transforming the “Zionist settler in Palestine” into an analogue of “white settlers in Africa.” That charge gained traction in a post-Sixties universe of civil rights, anti-imperialism, anti-colonialism, and Western self-abnegation. The work sought to turn the tables on the prevailing American understanding of Israel: It is not, in fact, an outpost of liberal democracy or refuge from antisemitism, but an instrument of white supremacy.
Orientalism popularized a framework through which today’s advocates on behalf of Palestinians understand their struggle against the state of Israel and the West generally. Said casts the Western world as the villains of history and peoples of the East as its noble victims.
The essence of the book, Said concluded, is the “ineradicable distinction between Western superiority and Oriental inferiority.” It falsely affirms “an absolute and systematic difference between the West, which is rational, developed, humane, superior, and the Orient, which is aberrant, undeveloped, inferior.”
So it was impossible to take Zionism seriously as one among the myriad nationalist movements that emerged in the nineteenth century, much less to see Israel itself as a land of refugees or the ancestral homeland of Jews. And, indeed, Said’s Orientalism singles out Israel for special rebuke, suggesting that the state could be justified only if one accepted the xenophobic ideology at the core of Western civilization. Israel’s defenders, particularly those who lament the lack of democracy in the Middle East and fault Arabs for their militancy, represent the “culmination of Orientalism.”
Said is widely acknowledged as the godfather of the emerging field of postcolonial studies, and his views have profoundly shaped the study of the Middle East. Said also inspired – and in some cases directly mentored – a generation of anti-Zionist U.S. scholars whose dominance in the academic study of the area is unquestionable today.
The political left that emerged trained itself to read every conflict as the aftershock of colonialism. The ideological narrative of oppression and resistance allowed even the jihadist to become a post-colonial rebel.
It’s hard to overstate the academic influence of Orientalism. The authors note that “As of this writing, it has been cited nearly 90 thousand times. It is also the 16th most assigned text in the OSP database, appearing in nearly 16 thousand courses.” Orientalism is among the most popular books assigned in the United States, showing up in nearly 4,000 courses in the syllabus database. Said’s work appears in 6,732 courses in U.S. colleges and universities.
But although it was a major source of controversy, both then and now, it is rarely assigned with any of the critics Said sparred with, like Bernard Lewis, Ian Buruma, or Samuel Huntington. Instead, it’s most often taught with books by fellow luminaries of the postmodern left, such as Frantz Fanon and Judith Butler.
All these ideas are now embedded into diversity, equity, and inclusion identity politics, and “humanitarian” outrage over supposed Israeli “settler-colonialism,” “genocide,” and “apartheid.”
The ground for the massive pro-Hamas college and university encampments, and attacks on Jewish students, was prepared decades ago. The long march of progressives through American institutions over the past decades has taken its toll on society.
Henry Srebrnik is a professor of political science at the University of Prince Edward Island.
Features
Exchange Rate Factors: What Global Events Mean for Savvy Investors
When Russia invaded Ukraine in 2022, it created ripples in all financial markets, including currency markets. The Euro weakened while the dollar surged and emerging market currencies wobbled. Global factors can quickly affect financial markets and shake established trends. Apart from such rare events, currencies tend to change their price because of interest rates, inflation, and overall investor confidence. For investors managing money abroad, understanding these movements is critical to avoid losses and mitigate risks.
Below, we will break down how global political, economic, and cultural events influence exchange rates, with insights for savvy investors.
Economic factors
There are several key exchange rate factors with a consistent history of shaking financial markets. These factors include inflation, interest rates, trade balances, employment rates, and so on. Since economic factors are shaping markets almost daily, we start with those.
Inflation and interest rates
Inflation and interest rates are closely connected as one can easily affect the other. When inflation rises, central banks step in and raise interest rates to reduce inflation, and when inflation is lower, central banks can lower interest rates to make borrowing money cheaper. As a result, investors closely monitor these two metrics to anticipate changes in interest rates. Higher inflation makes currencies weaker, and whenever banks change the rates, the changes are immediately reflected in global currency rates. In the United States, the Federal Reserve is the central bank that sets interest rates in the country.
Trade balances and economic growth
A country that exports more than it imports has a stronger demand for its currency. More demand equals a stronger currency. However, the Japanese yen was always weaker against the dollar because the BOJ of Japan tends to have super low rates near 0 to support its exporters. Economic growth also increases demand for local currency as more investors try to invest in the country’s economy. Long-term investors often track this data to detect early signs of any changes in currency strength.
Political and geopolitical factors
Elections, sanctions, and overall political stability are also crucial factors. If the country gets under sanctions, its economy crumbles and its currency becomes inflationary, losing its value quickly. Elections are also crucial for a currency’s strength. Geopolitical events can have a serious impact on the currency as well. The most obvious example is the 2016 Brexit events that made GBP lose its value rapidly and violently. Global conflicts, such as wars, can seriously impact global financial assets, especially currency markets. When tensions are high, safe-haven currencies like USD and CHF (Swiss Franc) become very popular among investors as they seek a safe place to protect their capital.
Cultural and social factors
People like tourists, workers, and diaspora communities can shape currencies as well. Tourism usually drives seasonal demand, and countries that are popular destinations during certain seasons experience their currency appreciation as demand spikes. The perception matters as countries seen as safe and opportunity-rich tend to attract more investors, solidifying their currency strength.
Technology and innovation
Technology is seriously affecting everything, especially the financial sector. Digital payment systems, blockchain technology, and fintech startups have made it easy and swift to move money around. Cryptos and stablecoins enable investors to protect their capital using stablecoins during volatile times. The latest trend among banks is to work on CBDCs, which signals a new era where national currencies are blended with technology and blockchain. Despite this, currencies, even in their crypto form, will continue to be influenced by all major factors mentioned above, and knowing how these factors impact your currency is key to keeping your capital safe from risks.
Practical lessons for savvy investors
So, what do all these factors teach us about global currency rates and investing strategies? The key lies in proper preparations and anticipation. Monitoring macro trends, policy announcements, and major geopolitical and political developments is critical.
Diversify
The number one method which is used by professional investors is diversification. This simply means to spread your risks across a basket of assets. By not investing all your capital in one instrument, you can mitigate risks. If one asset experiences a loss, other ones will counter it with returns. Building a diversified portfolio is key to properly diversifying. For example: divide your capital to buy stocks, commodities, currencies, and cryptos so that if one fails to perform, others will counter it. This ensures a stable income without unnecessary losses in the long run.
Hedge
Forex options and ETFs are great hedging assets. Forex options let investors lock in an exchange rate for a future date, which is very useful if you expect volatility but want stability. Currency ETFs, on the other hand, track specific currencies or a basket of currencies and allow easy trading or protection without trading forex directly, but they are still risky.
Monitor the economic calendar
Economic calendar is a free online tool that aggregates important macroeconomic news data such as interest rate decisions, CPI, inflation, employment rates, central bank announcements and speeches, and other crucial information. By monitoring them, investors can always know when important news data will be released, and they can postpone their investment decisions to avoid volatile times and only invest after the main trend is determined.
Features
The Canadian Dollar is on a slow decline. Should you save in euros or US dollars instead?
The Canadian dollar has been losing its value against the dollar this year. For Canadians, this raises a simple question: if your CAD is losing ground, is it better to move savings into euros or U.S. dollars, especially bonds, stocks, or a carry-trade strategy? Carry-trade strategy in this context means to borrow in CAD and invest it in the USA or the EU zone. This is a complex matter, and to understand where the CAD is, how attractive other currencies might be, we need to analyze these currencies more deeply. Below, we will walk you through the data, practical costs, and risks so you can reach a usable conclusion after reading this guide.
Quick snapshot – What the markets say right now
Recently, the Canadian dollar has hit multi-month lows due to weaker oil prices and a post-Fed (U.S. Federal Reserve) market reaction (which raised the rates, making the CAD weaker against the dollar). Canada’s central bank has cut its policy rate to 2.25%, while the Fed’s fund rate remains notably higher at about 3.75-4%. The ECB (European Central Bank) main interest rates are lower than the Fed’s and near the low-to-mid 2% range. While the Euro currency to USD rates remain mostly predictable, due to higher US bond yield rates, the EUR remains stronger, still. The U.S. 10-year Treasuries are around 4.1%, Canada’s 10-year near 3.2%, and Germany’s 10-year around 2.7%, meaning that today the USD-denominated bonds have the highest nominal yield among the three. As a result, the dollar seems much more attractive when it comes to bond yields and stocks.
Bonds – Which currency is the best for fixed income?
The short answer is: USD bonds. When it comes to nominal yield alone, US bonds beat almost all other competitors. U.S. government bond yields (10-year) are noticeably higher than Canadian and German/Eurozone bond yields right now. As a result, US bond buyers have more income potential than Canada and the EU. Euro-area core yields are lower, meaning they are paying less than the USA.
However, nominal yield does not mean it is guaranteed real return, and metrics like inflation, currency rates, and hedging costs can impact potential returns directly. If you buy USD bonds but the dollar falls against the CAD, currency losses will most likely wipe out the higher yield rate. If the Fed lowers its rates, it will make the dollar weaker against the CAD and EUR.
Another challenge is that, if you live and spend in Canada, you are using CAD, and when exchanging it for dollars, you get exposed to foreign currency rate risks, which must not be underestimated.
Stocks – Euro or dollar?
Both the EUR and USD have their advantages. USD has strong liquidity and strong long-term performance, while EUR equities offer valuation opportunities and recent relative strength.
Why USD?
The U.S. market remains the most liquid stock market with strong earnings for many tech and large companies. This makes USD stocks very attractive for long-term-oriented investors. S&P has been rising historically, and even after crashes, it often recovers its value relatively quickly.
Why EUR?
European indexes have performed well this year and in many cases cost less than their U.S. counterparts. While cheaper does not always mean better, these indexes still have some growth potential. Some major banks in the EU zone, together with industries, have recovered strongly with a recent focus on military manufacturing, making many EU stocks very attractive, together with local indexes.
However, here is a caveat: if you are using CAD daily and it loses its value against the euro, the returns from euro holdings might shrink, exposing you to greater currency risks.
Carry-trade analysis – Is it viable to borrow CAD and invest it in USD or EUR?
The basic promise of carry-trade is simple yet powerful: you borrow cheaper currency and invest it in currencies with higher yields. In our case, is it lucrative to borrow in CAD and invest in either EUR or USD? To answer this question, we need to look at numbers. BoC policy rate is 2.25%, Fed funds from 3.75%, U.S 10-yr is 4.1%, Canada 10-yr is 3.2%. If we deduct Canadian rates from the U.S. rates, we get around 1.8% positive before costs. So, in theory, it could be lucrative to invest CAD in USD assets using a carry trade. Since the ECB has around 2%, it is not profitable to use a carry-trade strategy for the euro.
The bottom line
While the CAD has been weakening lately, it is still not cheap enough to naively invest in USD or EUR. However, if you want a pure yield and can tolerate foreign exchange rate risks, USD bonds are more attractive today. When it comes to stocks, USD equities provide stable and liquid markets. If you want valuation potential and diversification, then euro equities have become more attractive this year. When it comes to carry-trade strategies, the USD remains more lucrative than the euro, but on paper, traders and investors should evaluate all the risks and costs before investing in any currency.
In the end, Canadians who have CAD for their daily costs should be careful when trying to get exposure to other markets. US bonds, US stocks, US carry-trade, and EU stocks remain attractive choices for experienced investors.