The Canadian dollar has mostly weakened against the US dollar, trading between C$1.20 and C$1.45 since 2015
US President Donald Trump in his Oval office. PHOTO: REUTERS
US President Donald Trump criticised the alleged exchange-rate gap between the Canadian and US dollars on Sunday, calling the “imbalance” unacceptable.
“Canada’s (currency) Dollar imbalance with the US is unacceptable,” Trump wrote on his social media platform Truth Social. “It has been that way for years – but no longer!”
Trump did not elaborate on what he meant by the remark.
The Canadian dollar has historically been weaker than its US counterpart for most of the past 15 years. The long-term average stands at about $1 to 1.24 Canadian dollars. Since 2015, the currency has mostly traded between 1.20 Canadian dollars and 1.45 Canadian dollars against the greenback.
It only reached or exceeded parity during part of the 2007-2012 commodity boom, when the Canadian dollar was stronger than the US dollar. The US dollar currently trades at around 1.38 Canadian dollars, meaning one Canadian dollar is worth roughly 72 US cents.
A weaker Canadian dollar makes Canadian goods cheaper for US buyers and US goods more expensive for Canadian consumers. Trump has repeatedly criticised the trade gap with Canada amid an ongoing trade war between the two neighbours.
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Trade talks between Canada and the US collapsed after Canadian Prime Minister Mark Carney ordered negotiators to return home from Washington. The US subsequently moved to impose 50% tariffs on key Canadian goods. Carney has vowed dollar-for-dollar retaliation starting Sept. 8.
It remains unclear whether Trump plans to take any action regarding the currency gap. The White House has not issued further details on the president’s remarks.
