Currency exchange rates can be very complex and even frustrating. That is because a nation’s money standard might be worth much when converted into another form of currency. However, if happen to live in a place where the money standard is valued around the world; then you can end up enjoying a higher conversion rate.
The Canadian dollar is strong, but the U.S. dollar is stronger. When these two dollars are exchanged, anyone having a U.S. dollar will be able to buy more goods and services than with a Canadian dollar. Why is that? It’s because the U.S. dollar has more purchasing power than Canadian money. Let’s take a closer look at the money exchange rate between the U.S. and Canada.
In November of 2019, $1 U.S. dollar is worth $1.33 in Canadian money. For every U.S. dollar that is exchanged for a Canadian dollar will give a person an extra $0.33 in Canadian money. Remember, exchange rates often fluctuate. So, if a person coverts $100 U.S. dollars they will end up with an extra $33 in Canadian cash. This is good news for people visiting Canada from the U.S. It means that they can travel to this great nation and enjoy more purchasing power. However, there could be a catch with converting U.S. money to Canadian currency.
Canada’s government gives cities and retailers the right to accept American dollars or not to take them at all. If a specific city or retail establishment doesn’t want to fool with American money, they don’t have to accept U.S. currency. Also, some cities and retail outlets can set their own exchange rates. This means that they can charge a lower exchange fee for an American dollar.
In other words, they can say that an American dollar is worth $0.50 for every Canadian dollar. This is an oversimplified example about how Canadian retailers can use the exchange rates in their favor. However, devaluing the American dollar to this low exchange fee has been done before.
People wanting to exchange U.S. dollars in Canada should visit the border areas of this nation. They should travel to locations near the Northeast U.S./Canadian border since they are the best places for exchange rates. Major Canadian cities such as Toronto, Hamilton, Ottawa, London and Montreal are favorable destinations to exchange (and spend) U.S. currency. Cities and towns that lie further north of the border usually accept Canadian money only.
Kiosks at border crossings, large shopping malls and banks are the best places for you to exchange U.S. currency for Canadian bucks. You can also go to your local credit union to purchase foreign currency before leaving for Canada. They usually provide great exchange rates. Travelers checks and ATM’s that handle currency exchange are other great options for securing Canadian money.