1 Loonie = 1 USD

Back in the late 80's and early 90's cross boarder shopping was rampant mainly due to the almost 90¢ to the American dollar exchange rate. I own my double cd of the Lamb Lies Down on Broadway to a family trip to the USA.

At the time my father told me that when he was young the Canadian was worth more than the US dollar. That's impossible right? This was the United States we were talking about here, the most powerful economic power in the world. Even Communists used the American dollar.

So jump ahead to today.

The Canadian dollar is at a 30 plus year high and briefly gained parity against the American dollar. Insane!

According to Finance Minister Jim Flaherty one reason for the upswing in the Loonie is the current economic state of the US. But one might think that the current housing and credit crunch could be really Bush's fault? You've got to love politicians sensitivity to real people trying to make ends meet.

There are certainly other implications to a high Canadian dollar and cbc.ca talks about them in this article.

The great thing is that on my next cross boarder trip I no longer have to do currency conversions in my head. I'll know for sure that's I'm paying too much for that Old Navy graphic tee.

If you would like to learn more about the history of the Canadian dollar, visit this PDF the Bank of Canada has put together.

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