Average Exchange Rates for 2015 and Five-Year Trends

The Bank of Canada has announced the 2015 average exchange rates for several currencies against the Canadian dollar. While some might be curious about how many Fijian dollars or Panamanian balboas one might get in exchange for a Canadian dollar, the currencies we are most often concerned about are the US dollar (1.2787 for 2015) and the Euro (1.4182 for 2015).

The US dollar is a particularly significant benchmark for the loonie, as most of our trade is with our partners to the south and so many Canadians invest in, and/or retire to, the US.  With the drop in oil prices, the loonie has suffered significantly. 

Just  how is our Canadian buck stacking up against the greenback over a five-year period? Well, here are the numbers from the Bank of Canada:

2015: 1.2787

2014: 1.1044

2013: 1.0299

2012: 0.9996

2011: 0.9891

After a couple of stable years at the beginning of this period, when the Canadian and US dollars were very close to par, there has been a steady decline in the value of the Canadian dollar. That means that although US investments may have been appreciating in value, thanks in part to the declining value of the Canadian dollar, retirement in the US has become a lot more expensive and those funding a snowbird lifestyle have lost a lot of value over the last five years. 

Planning for continued funding of lifestyles in the US, particularly by snowbirds, is important in light of these trends.

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