If you’re driving up north over the border, you won’t be able to use your U.S. dollars in Canada. You will need to buy Canadian dollars. There are a few bordertown-type places (like the Windsor casino) that might take your U.S. dollars at par, but don’t count on it.
While the U.S. is Canada’s largest trading partner (Canada is diversifying away from U.S. trade dependency, however), Canada has a completely separate economy from the U.S. and has a completely separate currency.
In the same way that the U.S. dollar is colloquially known as the greenback, the Canadian dollar is colloquially known as the loonie since sometime in the 1990s when one-dollar coins with loons (a wild bird, like a duck) on the front replaced the old one-dollar bills.
Can I Convert My U.S. Dollars To Canadian Dollars Once I’m In Canada?
Yes. In fact, the average currency exchange in Canada is very effective, as are all the major Canadian banks, at doing foreign currency exchanges. You will not need to call in three days in advance to exchange your money for another major global currency (as you do with Chase). In fact, since some banks – like Citibank – do not hold any foreign currency (as three Citibank representatives have told me in person and on the phone!) – it might even be easier for you to exchange your U.S. dollars for Canadian dollars once you get over the border.
There are Many Kinds Of Dollars Around The World
Did you know that the word “dollar” has nothing inherently to do with the US dollar? There are many different dollar-denominated currencies around the world. Here’s a list of just a few of them:
Australian dollar (AUD)
New Zealand dollar (NZD)
Canadian dollar (CAD)
Hong Kong dollar (HKD)
Singapore dollar (SGD)
Bahamas dollar (BSD)
Bermuda dollar (BMD)
Barbados dollar (BBD)
Fiji dollar (FJD)
When Is The Best Time To Exchange U.S. Dollars For Canadian Dollars?
The best time to convert your U.S. dollars to Canadian dollars is when the U.S. dollar (USD) is high against the Canadian dollar (CAD). Since the greenback is the world’s reserve currency (which has a number of trade consequences), the U.S. dollar’s level against other major world currencies does not necessarily reflect the economic fundamentals the currency is based upon. As we saw through the 2008-2009 credit crisis and recession, even when the Canadian economy fared better in terms of fundamentals than the U.S. economy, the USD rallied to high levels.
Thus, the U.S. dollar usually trades somewhat higher than the Canadian dollar. This is not a statement about absolute value, but about relative value between the two currencies. Therefore Americans will usually have a larger window in which to convert their money. A good range to aim for (based on historical precedents) would be to buy between $1.10 and $1.20 Canadian for each U.S. dollar. Conversely, Canadians should aim to buy U.S. dollars between 90 and 95 cents (or higher, when it happens!).
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