How to steer your finances around a weak loonie — or even get ahead
The loonie is struggling, putting a premium on anything Canadians buy that comes with a price tag in U.S. dollars.
With the Canadian dollar languishing around 69.5 cents US — floating near four year lows compared to the American greenback — experts say there are some steps consumers, investors and travellers can take to ease the financial stress of a weak loonie, and maybe even get ahead.
The Canadian dollar has lost roughly five cents in value compared to its U.S. counterpart over the past year.
There are a number of compounding reasons for the loonie’s struggles, from a growing gap in policy rates between central banks on either side of the Canada-U.S. border to fears of president-elect Donald Trump’s threatened tariffs and other political upheaval.
Experts who spoke to Global News see a cloudy picture for the exchange rate in 2025, though forecasts for an economic rebound in the second half of the year might help lift the loonie.
“The name of the game for Canadians right now is to understand what they can do to safeguard their finances and how to even potentially take advantage of the current environment,” says Shannon Terrell, lead writer and spokesperson for NerdWallet Canada.
Terrell says there are a few obvious areas where consumers will see their loonie lose buying power. That includes anyone shopping online from U.S. sellers, and those travelling south of the border this year.
Grocers, too, will be contending with the weaker exchange rate when they’re buying food from U.S. suppliers.
“Anything that we are bringing in from the U.S. essentially is going to become more expensive, primarily electronics, clothing and unfortunately, food,” Terrell explains.
“So we may see that impact on our already bloated grocery
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