You’re standing at a coffee shop in Windsor, looking across the river at Detroit, and you realize the five-dollar bill in your hand—the blue one with the kids playing hockey—doesn't buy as much as the five-dollar bill in the pocket of the guy across the water. It’s a weird feeling. For decades, Canadians and Americans have played this back-and-forth game of "who has the stronger buck."
But right now? Honestly, if you're asking is canada money worth more than us, the short answer is a flat no.
As of mid-January 2026, the Canadian dollar (CAD) is trading at roughly $0.72 USD. Basically, for every loonie you swap, you're only getting about 72 American cents back. It’s a gap that feels personal when you're trying to buy a pair of boots online or planning a trip to Disney World. But the "why" behind it is way more interesting than just a lopsided number on a ticker.
The Reality Check: Is Canada Money Worth More Than US Right Now?
We have to look at the cold, hard numbers. In the first few weeks of 2026, the exchange rate has been hovering in a tight range. On January 15, 2026, the absolute value of 1 CAD was $0.719 USD.
That’s not great for the Canadian side of the border.
👉 See also: www bexar org tax Explained: What You Actually Need to Know
If you take a $100 bill from Toronto to Buffalo, you’re walking into that Target with about $72 in spending power. This isn't just a 2026 problem; it’s been a trend. In 2025, we saw a lot of volatility. The loonie actually dropped to around $0.68 USD at one point in April 2025 when tariff talk was at its peak. It recovered a bit toward the end of that year, but it never crossed that magical parity line where 1 equals 1.
The US dollar is just a juggernaut right now.
Even though the Federal Reserve has been playing with interest rates, the American economy has stayed surprisingly resilient. Investors tend to treat the USD like a "safe haven." When things get shaky globally, they run toward the greenback. Canada, meanwhile, is often tied to the price of oil and raw materials. When oil prices are "meh," the loonie usually follows suit.
Why the Gap Matters for Your Wallet
It’s easy to think this only matters for big-shot traders in glass towers. It doesn't. It hits your grocery bill.
- Imported Goods: Most of the produce in a Canadian Sobeys during the winter comes from California or Mexico (priced in USD). If the loonie is weak, that avocado costs more.
- Subscription Services: Ever notice your Netflix or Spotify bill creeping up? Companies often adjust pricing based on these currency shifts.
- Travel Dreams: That road trip to Nashville? It’s 30% more expensive before you even start the car.
The "Glory Days": When the Loonie Beat the Greenback
Believe it or not, there were times when Canadians could walk across the border and feel like kings. It wasn't that long ago.
Between 2011 and 2013, the Canadian dollar was actually worth more than the US dollar. In 2011, the loonie hit a high of roughly $1.05 USD. You could swap $100 CAD and get $105 USD back. It felt like a glitch in the Matrix.
Why did that happen?
It was a perfect storm. The US was still dragging its feet coming out of the 2008 financial crisis. Meanwhile, Canada’s banks were stable, and more importantly, oil was trading at over $100 a barrel. Since Canada is a massive exporter of energy, a high oil price acts like a turbocharger for the CAD.
But those days are the exception, not the rule. Historically, the loonie likes to live in the $0.75 to $0.80 range. Seeing it drop toward $0.70 is painful, but seeing it hit $1.00 is a rare historical event.
The Purchasing Power Myth
Here is where people get tripped up. Just because the exchange rate says the US dollar is "stronger" doesn't mean life is strictly better or cheaper in the States. Economists use something called Purchasing Power Parity (PPP) to see what money actually buys you.
Sometimes, things in Canada are cheaper even with a weaker dollar.
Think about healthcare. In Canada, your "cost" is baked into taxes. In the US, a $100 USD bill might be "worth" more, but a chunk of that is going toward insurance premiums or a $50 co-pay at the doctor.
Also, consider the "Big Mac Index." It’s a fun (but real) tool used by The Economist to see if currencies are at their "correct" level. If a Big Mac in Toronto costs $6.50 CAD and the same burger in New York costs $6.00 USD, you can do the math to see if the currency is undervalued. Right now, most PPP models suggest the Canadian dollar should be worth about **$0.85 USD** based on the actual cost of goods.
The fact that it's trading at $0.72 means the loonie is technically "undervalued."
Factors Keeping the Loonie Down in 2026
If the loonie is "undervalued," why isn't it going up? Honestly, it’s complicated. Central banks are the biggest players here.
1. The Interest Rate Tug-of-War
The Bank of Canada (BoC) and the US Federal Reserve are constantly watching each other. If the Fed keeps interest rates higher than the BoC, global investors put their money in US bonds to get a better return. This drives up demand for USD and leaves the CAD in the dust.
2. Trade Agreements and Tariffs
The USMCA (the "new NAFTA") is always a looming shadow. In late 2025 and early 2026, talk about renegotiating trade terms or adding "universal baseline tariffs" has made investors nervous about Canada’s export-heavy economy. Nervousness equals a weaker currency.
3. The Oil Factor
WTI Crude is currently around $80-$85 a barrel. That’s decent, but it’s not the "triple-digit" boom that sends the loonie soaring. Unless there's a massive spike in energy demand, the CAD usually just treads water.
Actionable Steps for Dealing with the Exchange Rate
Since we’ve established that is canada money worth more than us is a "no" for the foreseeable future, you have to play the game differently.
If you're a Canadian traveling South:
Stop using your standard bank card. Most Canadian banks charge a 2.5% foreign transaction fee on top of the bad exchange rate. Look for "No FX Fee" credit cards (like Scotiabank Gold American Express or the Wealthsimple Cash card). It saves you a fortune over a week-long trip.
If you're an American visiting the Great White North:
You’re getting a 25-30% "discount" on everything. But don't pay in USD at the register. Many shops will take your US cash but give you a terrible 1-to-1 rate or something equally exploitative. Always pay in CAD or use a credit card that handles the conversion for you at the mid-market rate.
👉 See also: Tariffs from China Explained: What You’ll Actually Pay in 2026
For Investors:
Consider "Norbert’s Gambit." If you have a Canadian brokerage account and need to swap large amounts of money (like $10k+), don't let the bank take their 2% cut. You can buy a stock that is listed on both the TSX and NYSE (like DLR.TO), move it between accounts, and sell it for the other currency. It’s a bit of a loophole, but it’s totally legal and saves thousands.
The bottom line is that the US dollar is the world’s heavyweight champion. The loonie is a scrappy contender that occasionally gets a lucky punch in, but for now, the greenback wears the belt. Keep an eye on those Bank of Canada announcements in the coming months; if they start hiking rates while the Fed stays flat, you might see that 72 cents jump back toward 75 or 78. Until then, maybe stick to domestic travel or find a really good "No FX" card.
Keep your receipts and watch the tickers. The gap between the two dollars isn't just a number—it's the price of your next vacation.