Canadians travelling south of the border may want to reconsider their plans.
A winter vacation to the United States is suddenly a lot more expensive than expected, thanks to a sudden plunge for the Canadian dollar.
That led to a sudden 1.5 cent drop for the loonie.
Two years ago, the Canadian dollar was worth more than the U.S. greenback.
A year later, the loonie had dropped in value to 91 cents U.S.
Now, it’s at just 81 cents U.S.
For jet-setters who plan holidays a year or two in advance, it’s troubling news.
For others, with plans still in the works, there’s reason to avoid travel to the U.S..
Travel agents say more people are booking trips to Mexico and the Caribbean where deals are better and they can pay in Canadian dollars.
“I would say I have got a 50 per cent reduction of people trying to get to the states this year from exactly the same time last year,” says Jennie Mohamed, a travel planner with Park Lane Travel.
Those with travel to the U.S. predetermined are now scrambling to change their money before the dollar falls any lower.
It’s a good idea to shop around.
Transactions or service fees and exchange rates are competitive and can vary between banks and currency exchanges.
“Our rates are highly competitive,” says Amber Mcgee with Calforex Currency Exchange. She suggests banks’ exchange rates are changed less frequently.
“This is our business, currency exchange is who we are, what we do. We change our rates multiple times throughout the day.”
Experts recommend changing your money in Canada rather than using credit or debit cards when you get there to avoid additional conversion fees.
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