Money is a weirdly emotional thing. If you’ve ever stood at a border crossing in Niagara Falls or looked at the price of a book printed in both currencies, you’ve probably wondered: is canadian dollar more than us? It feels like it should be closer, right? We share a continent, a massive border, and a whole lot of hockey. But walk into any bank today, January 18, 2026, and the reality hits your wallet pretty fast.
Right now, $1 Canadian gets you about $0.72 USD. It’s been stuck in this 70-to-80 cent range for what feels like an eternity. Honestly, unless you were around during those brief, magical windows in the mid-70s or that wild stretch between 2007 and 2013, the "Loonie" has pretty much always been the underdog.
The Current State of the Loonie
Let’s talk numbers. As of this week, the exchange rate is hovering around 1.39 CAD for every 1 USD. If you’re a Canadian heading to Florida for the winter, that’s a tough pill to swallow. You’re essentially losing nearly 30% of your purchasing power the moment you cross the line.
Why? It’s not because Canada is "poor." Not even close.
The value of a currency is basically a giant, global popularity contest. Right now, investors are still obsessed with the U.S. dollar. Even with all the political noise in D.C., the U.S. economy has been putting up some resilient numbers. Their tech sector is a juggernaut, and as long as global commodities like oil are priced in Greenbacks, everybody needs them.
Why the Gap Exists
Most people think a "lower" currency means a "weaker" country. That’s a total myth. Japan’s Yen is worth a fraction of a cent, and they’re doing just fine. For Canada, having a dollar that is worth less than the U.S. version is actually a calculated (if sometimes painful) advantage.
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- Manufacturing boost: If a tractor costs $100,000 USD, a Canadian company can sell their version for $130,000 CAD and it still looks "cheap" to the American buyer.
- Tourism: It makes Vancouver and Montreal look like a "deal" for American travelers.
- Oil and Resources: Canada exports a massive amount of crude oil. Since oil is sold in U.S. dollars, when the Canadian dollar is low, those U.S. profits convert into way more Canadian dollars for the companies back home.
Will the Canadian Dollar Ever Be More Than the US Dollar Again?
It has happened. It’s not some impossible dream.
Back in November 2007, the Canadian dollar hit an all-time high of about $1.10 USD. People were crossing the border just to buy groceries. It was a bizarre time. The reason? Oil was skyrocketing toward $150 a barrel, and the U.S. housing market was essentially collapsing.
For the Canadian dollar to be more than the U.S. dollar, you usually need a "perfect storm." You need high commodity prices (oil, gold, potash) and a U.S. economy that is stumbling.
In 2026, we’re seeing a bit of a tug-of-war. The Bank of Canada has been keeping interest rates relatively steady at around 2.25% to fight lingering inflation, while the U.S. Federal Reserve is signaling more cuts. When U.S. rates drop, the U.S. dollar usually loses some of its "attractiveness" to investors. Some analysts, like Sarah Ying at CIBC, actually think the Loonie could climb toward the 76 or 77-cent mark by the end of this year. But parity? That's a long shot.
The Oil Connection (And Why It’s Fading)
Canada is often called a "Petro-currency." For decades, if oil went up, the Loonie went up. It was that simple.
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But things are shifting. As the world moves toward green energy, that link is weakening. Even when oil prices have spiked recently, the Canadian dollar hasn't jumped as high as it used to. Investors are looking at other things now—like Canada's massive housing debt and our aging population.
Mark Carney, former Bank of Canada Governor and a current big voice in Canadian finance, has pointed out that Canada needs to find a new "engine" for its currency. We can't just rely on pumping stuff out of the ground anymore.
Practical Steps for Your Wallet
If you’re waiting for the day the Canadian dollar is worth more than the U.S. dollar to book your vacation, you might be waiting a long time. Here is how to handle the current gap:
1. Don't use your local bank for large transfers. They will usually charge you a 2.5% to 3% "spread" on top of the exchange rate. If you're moving thousands of dollars, use a dedicated foreign exchange service. You'll save enough to pay for a nice dinner.
2. Watch the Bank of Canada announcements. Whenever the BoC sounds "hawkish" (meaning they might raise rates), the Loonie usually gets a little bump. That’s your window to buy USD.
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3. Hedge your investments. If you’re a Canadian investor, holding some U.S. assets (like stocks listed on the NYSE) is a natural hedge. When the Canadian dollar drops, your U.S. assets actually become worth more in CAD terms.
The "Is Canadian dollar more than US" question isn't just about pride. It's about the flow of billions of dollars in trade. While we probably won't see parity in 2026, the current stability around the 72-cent mark gives businesses a chance to plan without too much chaos.
Keep an eye on the USMCA trade renegotiations scheduled for later this year. Any friction there could send the Loonie for a dive. On the flip side, if the U.S. Fed gets aggressive with their rate cuts, you might just get a little more bang for your buck on your next cross-border trip.
Next Step: Check the daily "mid-market" rate on a site like XE or Oanda before you go to the bank so you know exactly how much of a cut they are taking from your exchange.