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Updated June 2023


Figure S1.8 shows the historical U.S./Canadian dollar exchange rates.


In 2022, the U.S./Canadian dollar exchange rate averaged US$0.77, about 4 per cent lower than in 2021.

With oil prices having increased above prepandemic levels, the exchange rate is projected to rise to US$0.80 by 2025 and stay flat afterwards.

In 2022

The Canadian dollar depreciated 4 per cent relative to the U.S. dollar from US$0.80 in 2021 to US$0.77 in 2022. The exchange rate started 2022 at US$0.79 in January before declining to US$0.73 in October and ended the year at US$0.74 in December.

Forecast for 2023 to 2032

The Bank of Canada and the U.S. Federal Reserve are expected to reach the end of their interest rate hiking cycles in early 2023 and hold them steady for most of the year. Canada’s exchange rate is forecast to hover around US$0.74 in 2023 and increase steadily to US$0.80 by 2025, supported by interest rate normalization and increased economic growth.

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