It’s Official: The Loonie > The US Dollar

by Ed Lau on September 21, 2007

canadian dollar, US, American dollar

After decades of Americans making fun of our colorful but worthless Canadian money, we can finally start doing the same about the American peso…I mean, dollar. After weeks of hovering near 99 cents per dollar, the Canadian dollar overtook the American dollar by a slim margin. This is the highest exchange rate for Canadian currency in 30 years as the last time our money was worth almost as much as the US was in the late 1970′s.

What does this mean to us in Canada? Well, going shopping in the States is now insanely awesome as prices are usually lower and now with an even exchange rate, we’ll get an even better return on our money. I mentioned I bought tires from Bellingham awhile ago and saved close to $300. Well, I would’ve saved even more if I had bought them more recently.

However, for Canadians who get paid in US dollars such as Adsense revenue and such, it’s like taking a bit of a pay cut. Prior to recent exchange rates, getting paid in US dollars was like getting a 50% bonus (well, during the very low exchange rate when it was close to 1.50 CAD per USD). I know John has been whining about this for months now.

I wouldn’t expect the American dollar to pick back up anytime soon though. Probably not for a few years at least. Some suspect that the devaluing of the dollar may be an intentional calculated risk by the government in order to repay debts at a lower rate. Of course, this also means it might be a good idea to invest in some American funds while it’s low…

in Current Events

{ 8 comments… read them below or add one }

Gdog September 21, 2007 at 3:36 pm

Dude…time to hit up the border for some killer deals baby!

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Leo September 21, 2007 at 5:48 pm

I’m going down for Red Lobster!

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Gdog September 21, 2007 at 6:44 pm

Good call. I’ve yet to experience the craziness of Red Lobster, time for Dot Com pho to be hosted there.

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Michael Kwan September 25, 2007 at 10:21 pm

Dot com road trip?

When I went to the Red Lobster near Six Flags Magic Mountain (LA area), I was disappointed with the lobster. It was all soft and mushy. The scampi and shrimp were good though.

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Alex September 21, 2007 at 7:08 pm

Wow America is sucking I blame bush

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Michael Kwan September 25, 2007 at 10:21 pm

I’m thinking you’re not alone in that sentiment. While it can’t be completely blamed for their currency situation, the war in Iraq hasn’t exactly helped the US dollar.

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Carl September 21, 2007 at 8:20 pm

This is a win/lose situation for me. On one hand, much of my income is USD. On the other, when I do bring CAD into Hong Kong, it is worth more than ever since HKD is pegged at USD.

For instance, when I first moved here last year, the CAD > HKD was about $1 = $6. Now $1 CAD is worth $7.78 HKD. When I was here in 2003, it was $1 = $5.

So going for lunch costs about, say, $35 HKD. In 2003 that was $7 CAD. Now the same lunch costs $4.49!

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Stephen September 21, 2007 at 10:47 pm

I’m in California and it’s GREAT! :D

But yeah, making US funds in Canada sucks :P

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