Guide to the Canadian Dollar (CAD): Travel, Transfers & FX Tips
The Canadian dollar (CAD) is a major global currency closely linked to commodities and US trade. This guide explains how it works and how to manage CAD FX costs.
The Canadian dollar (CAD) — often nicknamed the “loonie” — is one of the world’s most actively traded currencies. Used across Canada and widely held by global investors, CAD plays an important role in trade, travel, and international money transfers, particularly between Canada and the United States.
Whether you’re travelling to Canada, sending money to or from Canada, or running a business with CAD exposure, understanding how the currency works can help you make smarter FX decisions and avoid unnecessary costs.
Canadian Dollar Performance vs Major Currencies (Last 12 Months)
The Canadian dollar (CAD) has experienced varied movements against major global currencies over the past year, influenced by a combination of commodity prices, interest rate differentials, and global economic conditions. The live comparison below shows how the Canadian dollar has performed relative to key trading and travel currencies over the past 12 months.
While CAD has strengthened against some currencies and weakened against others, these shifts highlight how exchange rates can move in different directions at the same time depending on regional growth and market sentiment.
Why the Canadian Dollar Matters Globally
The Canadian dollar is typically ranked among the top 10 most traded currencies worldwide. Its importance comes from:
- Canada’s role as a major exporter of oil, gas, and minerals
- Deep economic integration with the United States
- A stable political system and well-regulated financial sector
- Strong participation in global FX and bond markets
Because of this, CAD is widely used in international trade contracts, FX hedging, and investment portfolios.
How-to Save on CAD Exchange Rates
Exchange rates can vary significantly between different banks and currency exchange providers, so it's important to compare Canadian dollar (CAD) exchange rates from different sources and providers before making a foreign exchange transaction.
The below Exchange Rate Rate Calculator and Comparison Table makes it easy to compare the Total Cost you are being charged on US dollar exchange rates and the possible savings of using each provider.
Canadian Dollar Exchange Rate Pairs to Watch
Some of the most closely followed CAD currency pairs include:
- USD/CAD – reflects US–Canada trade and oil prices
- EUR/CAD – influenced by global growth and risk appetite
- GBP/CAD – sensitive to commodity cycles and UK rate expectations
- AUD/CAD – a commodity vs commodity currency comparison
You can track live movements and compare providers on BER’s CAD rate pages.
Key Factors That Influence the Canadian Dollar
1. Commodity Prices (Especially Oil)
Canada is one of the world’s largest oil exporters. When oil prices rise, CAD often strengthens; when they fall, CAD can weaken.
2. US Economic Performance
Roughly three-quarters of Canadian exports go to the US, making CAD highly sensitive to:
• US growth
• Federal Reserve policy
• USD movements
3. Bank of Canada (BoC) Policy
Interest rate decisions by the Bank of Canada directly affect:
• Capital inflows
• Mortgage and credit conditions
• CAD demand versus other major currencies
4. Global Risk Sentiment
CAD tends to perform better when investors are optimistic and worse during periods of global uncertainty, when “safe haven” currencies dominate.
Sending Money To or From Canada
International transfers involving CAD can vary widely in cost depending on the provider.
Common use cases include:
- Migrants sending money home
- Businesses paying Canadian suppliers
- Property purchases and investments
- Freelancers billing overseas clients
Banks often advertise “no fees” but apply wide FX margins, while specialist providers usually offer:
- Tighter spreads to mid-market rates
- Transparent pricing
- Faster settlement
Tip: Always compare the exchange rate margin, not just the transfer fee.
Compare Transfers rates at our 🇨🇦 How to Send Money to Canada Guides
Final Thoughts: Is the Canadian Dollar Stable?
The Canadian dollar is generally seen as a stable but cyclical currency. It benefits during periods of global growth and strong commodity demand, but can weaken during downturns or sharp falls in oil prices.
For travelers, expats, and businesses, the key takeaway is simple: small FX margins add up quickly, so comparing rates and timing transfers can make a meaningful difference.
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.
