Are You Getting Value For Your Cdn. Dollar Exchange?

It doesn’t have any yeast. You don’t have to put it in the oven. And you don’t have to be a baker to watch this dough rise. The Canadian dollar has been cooking up some amazing results during the last few months, hitting that amazing US$1.10 mark on Wednesday.

While many are wondering if it will go any higher, others are pondering what happens if this soufflé doesn’t fall soon. Canadian shoppers are having a field day with the strong buck but small manufacturers are getting clobbered. So are some retailers, who are stuck with higher prices while their customers go elsewhere.

And then there’s the tourist industry. They’re seeing fewer and fewer Americans coming this way, although that’s been partially offset by an increase in visitors from other countries. And while we’ve heard all about the exchange rate, how much are you really able to get if you try to trade one dollar for another?

To find out,   CityNews took a few hundred dollars in Canadian funds to three different money exchangers. The result? We got less than the dollar was worth on the markets at two of them. That’s because the rate really only applies to currency traders. So how much Canadian bang can you really get for your U.S. buck?

At a local bank, they gave us $1.08 for every Canadian dollar, two cents off the rate. A downtown hotel didn’t give us any reservations, providing the exact rate at the time of the experiment, $1.10. And one of those currency exchange kiosks that make money by taking a bit off the top gave us only $1.07 – a three cent difference.

Still, you’re better off making the exchange here than in the U.S. Citibank in Florida will only give travelling snowbirds $1.03 for their loonie, while an L.A.-based Bank of America offered just $1.04.

Despite the obvious gap, most Canucks aren’t complaining. “I’m not really sure how that all works but it sure beats 65 cents that it was a few years ago,” enthuses Miami-bound Claire McDonald.

What should you do? Make sure you exchange your money here before you go. You may not get full value but at least you’ll be close. And if you intend to use your credit card, be aware what rate you’ll be charged when they do the conversion and how much you’ll be losing if you do.

Here’s a look back at the history of the loonie’s incredible rise in March, when the ascension first began.  (Courtesy Bank of Canada)                                                  

click here.