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March 16, 2022

Strong loonie gives Cdn. Spring Breakers a boost

Right now, thousands of Canadians are on a beach and you’re not.

Want to make matters worse? Canuck vacationers, despite the big cash they’re dumping on jet ski rentals, Jeep island tours and snorkel shots, are actually being fiscally responsible.

Um, whuh?

Alright, they’re not being that  responsible, but Canadians fraternizing in the U.S. – or any destination that accepts the greenback, which is everywhere – have gotten a nice boost by the surging loonie, which is helping them Spring Break without Spring Breaking the bank quite as much.

Closing Monday at 98.15 cents US, the Canadian dollar’s near-parity with its American counterpart has indeed come just in time for travellers, who haven’t seen their cash go this far abroad since two summers ago.

“For Canadians going down south for the break, obviously, the strong loonie is a bonus,” RBC Capital Markets’ Matthew Strauss told the Toronto Star.

“We have not seen these levels since July, 2008.”

We won’t know how many Canadians visited or how much was spent in the U.S. till later this spring, but the U.S. economy could be in for a nice boost if our spending ways continue.

According to the Star, 1.7 million Canucks took overnight trips to the States last March alone. In the first three months of 2009, by comparison, those same Canadians spent $3.5 billion inside the U.S.

And apart from the little jazzing up our Canadian spending will give the battered American system, our own stronger dollar gives the indication that – aside from its negative effects on exporters – Canada’s recovery is as firm as ever.

Seems like a win-win for now at least, right?

By Jason Buckland, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

James HaversJames Havers

James is the senior editor of MSN Money living in Toronto. He has worked for the Nikkei Shimbun (Tokyo),,, Canadian Business and other publications. Havers turned to journalism after teaching overseas.

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...