Skip to content ↓

It’s a Fact, Eh? – The Loonie and the Dollar

I maintain an occasional series of articles called “It’s a Fact, Eh?” which offers little glimpses at some of the joys, complexities, and eccentricities of being Canadian and living here in the Great White North. Today I want to talk about the Canadian dollar and its relationship to its American counterpart. Really, I want to talk about the Canadian obsession with the U.S. Dollar.

When you listen to a Canadian news report, you will almost always hear how the Canadian dollar (the Loonie) is doing in comparison to the American dollar. “Today the Loonie gained two basis points and closed at 75.92 (US).” Canadian media reports this information on a daily basis because Canada is so heavily dependent on our relationship with the United States in matters of trade. A lot of what we buy, what we eat, what we watch, what we read is shipped up from America. We buy these products in Canadian dollars, of course, and that Canadian dollar gains and loses value in comparison to the greenback. Sometimes the Canadian dollar gains in strength so that the two currencies are roughly equal, but sometimes there is a twenty or thirty-percent disparity between them. Currently one Canadian dollar will purchase just seventy-five cents American.

Why does this matter? It matters a lot when it comes to those products that come to Canada from the U.S.. When the Canadian dollar is strong, as it has been quite recently, we tend to pay the same amount as Americans for these products. So, for example, the cheapest apps at the Apple App Store are typically $0.99, just like in America. But then sometimes the Canadian dollar loses value just like it has done recently. When this happens there is a sudden adjustment and one day we wake up to find the apps now begin at $1.29. The app that cost $9.99 yesterday costs $13.99 today. The computer that was $999 is now $1299 or $1399. Book prices fluctuate the same way (in both print and electronic formats) as do movies (so that renting movies online now costs $5.99 instead of $4.99). Even groceries are affected—we are paying twenty percent more for produce this year than we were last year since the bulk of it is shipped up from California.

This all makes sense. Those American manufacturers can’t lose twenty-five or thirty-percent in the currency exchange. But here’s where it gets difficult for Canadians: When our dollar weakens, certain products and services experience a dramatic rise in cost, but our salaries do not. So even though we now pay twenty percent more for produce, for online services, and for certain other items, some of which are luxuries and some necessities, we do not have a commensurate rise in income to offset it.

So now you know why when you come to Canada you will always hear about the American dollar on the Canadian news. It’s a fact…


  • Francis

    Did Francis Prove To Be “The Humble Pope?”

    Francis’ time as pope has come to an end and already many are attempting to define his legacy. Was he a reformer? Was he a progressive? Was he an apostate? Perspectives are wildly varied with some honoring him as the greatest pope of modern times and some dishonoring him as a disgrace to the office.

  • A La Carte Collection cover image

    A La Carte (April 23)

    A La Carte: How to begin a conversation with a dechurched friend / Machen was right / The truth of Christ’s resurrection / When grief becomes sin / Nope to the media’s ideal for a new pope / Book sale / and more.

  • A La Carte Collection cover image

    A La Carte (April 22)

    A La Carte: Pope Francis / Yes, Jesus was crucified with nails / The mystery of “the call” / Just a little bit / The last of the four / John outran Peter / Kindle deals / and more.

  • Will You Be a Pillar?

    How do we lead in a culture shaped by performance, individualism, and platform? Platforms to Pillars by cultural commentator Mark Sayers offers a biblical alternative to the platform mentality that dominates our society. Drawing from the ancient world, Sayers challenges Christians to become pillars—people who provide strength and support for others, who live with character…

  • The Tallest Trees

    The Winds Blow Hardest Against the Tallest Trees

    Through the weekend had many questions about Christian leaders who fall. And I expressed that just as the winds blow hardest against the tallest trees, so temptations may press hardest against the leaders who rise the highest. Just as floods press against shallow roots, so seductive desires rise up against those whose fall would bring…

  • A La Carte Collection cover image

    A La Carte (April 21)

    A La Carte: Toxic servant leadership / Taking our stress to the Lord / The problem with habits / Is it wrong for Christians to choose cremation? / Why does your church meet in a house? / Big book and Kindle deals / and more.