For many Canadians, spending in a foreign currency can be extremely costly, especially with the unfavourable currency exchange rate between the Canadian and U.S. Dollar. There was a time when CDN$1 CAD was worth USD$0.94, but today, that conversion is closer to USD$0.73 for every Canadian dollar.
This makes travelling to nearby destinations, like in the US, even more expensive, with many Canadians holding out until the dollar strengthens. Luckily, there are many places where the Canadian Dollar can go further, and these destinations can be equally fantastic!
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How much is the Canadian dollar worth?
Factors like the stability of the government, higher interest rates and energy prices can support or diminish the Canadian Dollar. Canada once enjoyed support from strong energy prices helping keep the dollar strong, but today, these factors prevent it from strengthening. Other geopolitical factors like the war in the Middle East has weakened many currencies, including in Canada.
Today, CDN$100 CAD is worth USD$73USD or €67 Euros or £57 in Great British Pounds Stirling.
How to make the most of your money while travelling
While Canadians want to find the cheapest places to travel with the current state of the dollar, there are also some great tips where you can save several cents on the dollar by using a credit card that offers no foreign exchange fees.
If you are opting for physical cash, just be mindful that once you exchange your currency, you want to avoid changing the money back and forth as each time you convert, providers typically take a cut. If you plan to return to that country, you might be better off holding onto the cash or opening a foreign currency bank account to store the funds until your next visit.
Where the Canadian dollar is worth the most
Some of the cheapest places to travel with the Canadian dollar are mostly outside North America. Our recommendations take you away to a country you likely have yet to visit.
Hungary and Romania
While cities like Paris or Barcelona may be top of mind when you think of Europe, don’t pass up the opportunity to check out a new part of the vast continent. Hungary is a country in Central-Eastern Europe that many consider a hidden gem. It’s also one of the countries that has not adopted the Euro, keeping them more affordable than countries like France and Spain. That means your Canadian $1 converts to HUF$260 – or Forint – an extremely advantageous conversion for Canadians.
As for the country, Hungary is rich in history, architecture and plenty of affordable local cuisine. Budapest, their capital, offers plenty to do during the day and night — be sure to check out one of their historic thermal baths along the way. If you visit Hungary, don’t pass up another top pick, Romania!
Romania is best known as the home to the legendary Dracula, and it’s easy to see why the stunningly beautiful country caught author Bram Stoker’s imagination. Towering mountains, plenty of castles and colourful, fairytale villages will captivate all types of travellers; whether you’re interested in hiking and the outdoors, history or just looking to explore somewhere off the beaten path. While prices vary throughout the country, you can find a nice, centrally-located hotel room in Bucharest for around CDN$100 per night or an Airbnb for CDN$30 per night.
Thailand
Airlines like Air Canada are now offering direct flights to Bangkok from Canada. Thailand is notorious for their cheap street eats and vibrant culture. Once you land and see the temples, taste the food and get a massage, you’ll be wondering what took you so long to get there.
Bangkok can be a bit overwhelming with its crowds and traffic, but it’s not like this all over the country. Chang Mai has a much slower pace of life where you can experience Thai culture, and if you head to any of the islands, it shouldn’t be that difficult to find your private paradise.
The best thing about Thailand is that you can enjoy yourself on any budget. You can easily get a basic room with a fan for less than $20 CAD a day, but you could also “splurge” on a 4 or 5-star property, which would only set you back between CDN$120 to $250 per night. Pad Thai from a street vendor is about CDN$2, while meals at a restaurant catering to tourists shouldn’t cost you more than CDN$10 to $15 per person.
Morocco
On top of an attractive exchange rate of CDN$1 to 7.2 Moroccan Dirhams, the country is rich in history and geographic landscape like the dunes in the Sahara.
One of the many reasons Canadians visit Morocco is for the sprawling range of souks in Marrakech, with affordable leather goods and jewelry. Access an authentic hammam spa for the equivalent of CDN$2 or a massage for under $20 Canadian dollars. You can eat well without breaking the bank, with the friendly exchange rate taking you even further.
Argentina
Like the Canadian Dollar, the Argentinian Peso has also struggled. A trip to Argentina has never been cheaper for Canadians.
When you roam the streets of Buenos Aires, you’ll wonder if you’ve accidentally gone to Europe, with its charming cafe culture and museum scene. Oddly enough, the biggest tourist attraction in the city is arguably Recoleta Cemetery, where some of the most famous Argentinians are buried including, Eva Perón (Evita).
Most people who come to Argentina also take the time to visit Iguazu Falls, Patagonia or Ushuaia. These eco-adventures may not be cheap, but when you’re paying on average CDN$35 for a steak and wine dinner for two, you might as well splurge on a once-in-a-lifetime adventure.
Mexico
Closer to home in North America, Mexico is a winter favourite for Canadians, especially with its affordable activities, food and accommodation. With accessible flights from most parts of the country, cities like Cancun, Mexico City and Puerto Vallarta offer something for everyone.
In Mexico, you can experience everything from crystal clear waters, pristine beaches and stunning architecture, to cheap street eats and learning about the country’s rich history — all in one trip!
With CDN$1 converting to approximately 12 Mexican Pesos, the country offers tremendous value for Canadians looking for more bang for their buck. On top of that, for those who are looking to stay on guided tours, there are plenty of fantastic options that give tourists an authentic and safe experience.
Travelling abroad? Use the best credit card when making purchases
Just how far can your Canadian travel credit card take you? Many credit cards charge fees when making a purchase in a foreign transaction, which can become costly when you’re visiting a different country and using your card as your primary purchasing option.
Instead, consider using a credit card with no foreign transaction fees.
Bottom line
While getting away may seem out of reach at times, many pockets of the world are more affordable than going to New York or Miami. Look for cities with off-peak airfares, low-season accommodations, discounts on popular attractions or points of interest, or even buy-one-get-one deals.
Being a financially savvy traveller coupled with these money-saving currency exchange tips will help you soften the difficult dollar and will let you discover a hidden gem or two out there while at it!
