This piece was written during the post-recession rebound. At that time, oil prices were driving Canada’s dollar sky-high. It captures a rare burst of currency confidence. The 2009 loonie “muscle moment” faded fast once oil fell again. In 2025, the same story repeats: energy prices rise, the loonie flirts with USD 0.80, exporters groan, and Canadians start eyeing Buffalo for deals.
It seems the Canadian Dollar is again rocketing up in value compared to it’s anemic continent-mate the once mighty U.S. Dollar, which could mean many different things to us Canadians such as:
- We need bigger wallets because our money is worth so much more. OK, that is a joke. However, Canadians traveling to the U.S. or buying U.S. securities are getting “deals” now due to the Canadian Dollar’s high value. Maybe it’s time to think about buying some American assets. How about going to the States and buying your snow tires down there? It might be cheaper, too!
- Canadian Workers are no longer just lazy and shiftless; we are bloody expensive, too. Again, this is a weak attempt at humour. It is unfortunate for Canadian Firms trying to sell their services in the U.S. It is also bad news for those selling their products, as our products have increased in value without us doing anything.
- The Canadian Dollar might become the “World Standard” for money. Yes, that is another weak attempt at humor. The Euro is more likely to take that mantle away from the U.S. greenback very soon (if not the Chinese Yuan).
- Given our dollar is only worth 0.65 of a Euro and 0.61 of a Pound Sterling maybe we shouldn’t worry so much? That’s a naive answer, our biggest trading partner is the U.S. and if they stop buying our stuff, it is going to hurt, but luckily some of the stuff they buy they really need, like Oil. Oil prices have dropped a bit. However, our American Cousins remain addicted to Crude. We are their major pushers right now.
Does this mean the Canadian economy is so much stronger than the American? Um, no, it means the U.S. economy is in bad shape, but it can easily drag Canada down as well, so it behooves us to help our U.S. comrades to get out of this Economic Funk and get back to their free-spending ways (and of course Buy Canadian!).
Conclusions?
Before the Loonie drops again, maybe whip across the border and pick up:
- Snow Tires
- Some electronics stuff
- Clothes
- A Whole Market ETF
and, of course, remember to declare it all at the border (and bring your passport, too).
Redux Canadian dollar strength
Every time the loonie bulks up, Canadians act like we’ve discovered gold in our backyards. “Look at us! We’re at par!” Meanwhile, exporters clutch their pearls and economists start chewing through their pencils. Canadians strut across the border for cheap jeans. We come home with a maxed-out Visa. We also bring back a bag of stale Cheetos.
Be honest: our dollar’s ego trips never last. The second oil dips, our “financial six-pack” turns into a doughy exchange-rate belly. We’re not world-beaters; just polite shoppers with a brief discount window. Enjoy it while it lasts, then get back to budgeting.
