CBC Digital Archives CBC butterfly logo

CBC Archives has a new look: Please go to cbc.ca/archives to access the new site.

The page you are looking at will not be updated.

Canadian dollar slides down below parity with $1 US

The Story

A Canadian dollar's just not what it used to be. Today, for the first time in four years, the Canuck currency closes below parity with its U.S. counterpart. Citing political uncertainty and lower interest rates, foreign companies dumped their dollars, which as recently as April 25, 1974, sold for $1.0443 US The last time the dollar closed above par was the day before this clip aired, on Nov., 25, 1976. It would be the last time for three decades that a Canadian dollar was worth more than a U.S. dollar.

Medium: Television
Program: The National
Broadcast Date: Nov. 26, 1976
Host: Peter Kent
Duration: 0:29
This is the audio of a TV report for which video is unavailable.

Did You know?

• The political uncertainty cited in this clip refers to the fact that just ten days earlier the Parti Québécois won its first majority government in the Quebec provincial election. According to the Bank of Canada's history of the dollar, this "prompted markets to make a major reassessment of the Canadian dollar's prospects." Shifts in commodity prices, interest rates and changing monetary policy also affected the value of the currency.

• The sell-off of Canadian dollars described here was not short-lived. In the following two years, the dollar fell below $0.84 US, even as the U.S. dollar was also depreciating against other world currencies. By 1982, the dollar had fallen further still to $0.77 US and in 1986 reached a new low of $0.6913 US.

• Although the dollar rebounded by 1991 to trade at $0.89 US, it hit its historic bottom at $0.6179 US in 2002.

• Just five years later, on Sept. 20, 2007, the dollar rocketed up to trade at par again for the first time since this clip aired.




Banking and Money more