Updated May 2022
Figure S1.8 shows the historical U.S./Canadian dollar exchange rates.
In 2021, the U.S./Canadian dollar exchange rate averaged US$0.80, about seven per cent higher than in 2020.
With oil prices having recovered, the exchange rate is projected stay at US$0.80 for 2022 and onwards.
The Canadian dollar appreciated seven per cent relative to the U.S. dollar (from US$0.75 in 2020 to US$0.80 in 2021). The exchange rate peaked at US$0.83 in May and US$0.82 in June and ended at US$0.78 in December.
Forecast for 2022 to 2031
The Bank of Canada and the U.S. Federal Reserve are expected to raise interest rates in 2022 and continue into 2023. Canada's exchange rate is forecast to stay at US$0.80 in 2022 and onwards, supported by the forecast that commodity prices stabilize.