If you want to go shopping in the States soon or even if you are planning to do some online shopping, you might want to do it as soon as possible. Shopping in the United States will be significantly more expensive for Canadians this year. The Canadian dollar will become extremely weak against the U.S. dollar in 2019, even worse than it is now.
Several expert analysts have been forecasting that the Canadian dollar will significantly fall this year. It's even been predicted to reach record-lows and fall to $0.62 cents against the U.S. loonie, The Huffington Post reports.
As of today on Tuesday, March 19, one Canadian dollar is worth 75.3 cents in USD. It's been several years since the Canadian dollar was worth more than the U.S. dollar back in 2011.
The fall of the Canadian dollar is alarming for Canadians for many reasons. For starters, this makes it much more expensive for Canadians to shop in the U.S. since the dollar is so weak. On top of that, this will also increase prices of goods in Canada too, since many items sold in the country are U.S. products that are imported into Canada.
Not only that, but travel costs will also rise for Canadians. Travelling to and within the U.S. will be much more pricey due to the expensive dollar conversion rates. However, that's not all.
Even if you're travelling outside of the U.S., this will likely still affect you. For instance, many American airlines operate flights from Canada to international destinations, meaning flight prices will likely increase for Canadians if the dollar weakens.
So what are the reasons behind this intense weakening of Canadian currency? One of the big factors is that the Canadian economy as a whole is currently weaker than expected. Unfortunately, the Canadian dollar's fall is indicative that the country's economy is struggling.
Many Canadians are trying to deal with large household debts, and this has contributed to the slowdown of the economy, according to Bloomberg. "You’ve never had debt levels as high, relative to incomes in Canada," Tulk from Fidelity Investments said to Bloomberg. The nation may even already be experiencing a recession, David Wolf at Fidelity Investments Canada, told Bloomberg.
If you're planning to do any shopping in the U.S. or order items from the States to be shipped into Canada any time soon, it's probably better to do it sooner than later. Get ready Canadians, because things are, unfortunately, about to get even more expensive.