You’re standing there with 700 USD, maybe it's a stack of crisp bills or a digital balance in your PayPal, and you want to know exactly what it’s worth across the border. No fluff. No "financial landscape" jargon. Just the real math. Right now, if you were to look at the mid-market rate on January 18, 2026, that $700 is worth about **$974.71 CAD**.
But here’s the thing. You aren’t actually going to get $974.71.
Most people check a Google converter, see that high number, and then feel like they've been robbed when the bank teller hands them back something closer to $930 or $940. It’s frustrating. It feels like a scam, but it’s basically just how the retail currency game works.
The Gap Between "The Rate" and Your Money
There are two rates in this world. There is the mid-market rate (the one you see on Google or XE) and the retail rate (the one the bank gives you).
If you take your 700 us dollars to canadian at a major bank like RBC or BMO today, they’re likely going to "sell" you those Canadian dollars at a rate around 1.34. Do the math on that. $700 multiplied by 1.34 is **$938 CAD**.
Wait.
The market said it was worth $974. Where did that $36 go? It went into the "spread." Banks and kiosks at the airport aren't doing this out of the goodness of their hearts. They take a 2% to 5% cut by giving you a worse rate than the real one.
Honestly, it’s kinda annoying. If you’re at a Pearson International Airport kiosk, it might even be worse. Some of those spots have spreads as wide as 7% or 10%. You could walk away with less than $900 CAD for your $700 USD if you aren't careful.
Why the Rate is Hovering Here in 2026
We've seen some weird swings lately. Back in early 2025, the CAD was a bit stronger, but things shifted.
The Bank of Canada and the US Federal Reserve have been playing a game of "who blinks first" with interest rates. When the US keeps rates higher for longer, the greenback stays king. Investors want to hold USD to get those yields. This pushes the value of your 700 dollars up when you're headed into Canada.
Oil is the other big player. Canada is a "petro-currency." When Western Canadian Select (WCS) prices take a dip or pipeline projects hit a snag, the Loonie usually feels the bruise. Currently, the market is seeing a bit of a "front-end compression," as the experts at RBC Capital Markets put it. Basically, they expect the USD to slowly lose some steam against the CAD throughout 2026, potentially dropping toward the 1.32 or 1.30 range by year-end.
So, if you're holding that $700, you're actually in a pretty good spot right now compared to what might happen later this year.
How to Get the Most Loonies for Your Buck
You’ve got options. Some are great. Some are terrible.
1. Use a Peer-to-Peer Service (Best for Digital)
If your money is sitting in a US bank account and you need it in a Canadian one, services like Wise or Revolut are the gold standard. They give you that mid-market rate ($1 USD to $1.39 CAD) and just charge a small, transparent fee (usually under $5 for a $700 transfer). You’ll end up with about **$968 CAD** in your account. That’s significantly better than the bank.
2. The "Norbert’s Gambit" (For the Hardcore)
If you are moving thousands, you’d use this. For $700, it’s probably too much work. It involves buying a stock that is listed on both US and Canadian exchanges (like DLR.TO), then asking your brokerage to "journal" the shares over. It bypasses the FX fee almost entirely. But for $700? Just use an app.
3. The Cash Trap
If you have physical $100 bills in your pocket, stay away from the airport. Seriously. Go to a dedicated currency exchange office in a downtown area (like Vancouver's VBCE or Kantor in Toronto). They live and die by their reputation and usually offer much thinner spreads than the Big Five banks.
A Quick Breakdown of What You’ll Receive
| Where You Exchange | Approximate CAD Received |
|---|---|
| Google "Mid-Market" (Reference Only) | $974.71 |
| Wise / Digital Apps | **$968.50** |
| Local Currency Office (Downtown) | $955.00 |
| Major Canadian Bank (In-branch) | $938.00 |
| Airport Kiosk (Avoid!) | $895.00 |
Is it Better to Spend USD Cash in Canada?
You’ll see signs in tourist trap shops in Niagara Falls or Banff saying "USD Accepted."
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Don't do it.
These shops usually offer a "1-to-1" exchange or maybe 1.10 if they’re feeling generous. If you buy a $10 souvenir with a US $20 bill, they might give you change back in Canadian at a rate that would make a shark blush. Basically, you’re throwing away 20% of your money.
If you have to spend, use a credit card with no foreign transaction fees. Most travel cards in 2026 have stripped these fees away. The card network (Visa or Mastercard) will give you a rate very close to the market, and you won’t have to carry a pocket full of "toonies" and "loonies."
Small Factors That Actually Matter
Check the calendar. If you're exchanging on a weekend, the "market" is closed. Many apps and banks will bake in a "weekend buffer" to protect themselves against the rate jumping when the market opens on Monday. If you can, do your conversion on a Tuesday or Wednesday.
Also, watch out for "flat fees." Some places charge a $5 or $10 service fee regardless of the amount. On a $700 exchange, a $10 fee is an extra 1.4% cost you don't need to pay.
Practical Steps to Take Now
If you need to turn that 700 us dollars to canadian right now, here is exactly what to do:
- Check your credit card: See if you have a "No FX Fee" card. If so, just use that for your spending in Canada and keep your USD in the bank.
- Use an app for transfers: If the money is for a friend or a bill, use Wise. It’s the closest you’ll get to the real rate.
- Find a "Mom and Pop" exchange: If you have physical cash, look for a local currency exchange with high Google reviews in a city center. Avoid the banks unless you already have an account with them and can negotiate a "preferred" rate.
- Download a converter: Keep an app like XE on your phone so you can check the live rate before you walk up to any counter. If the number they say is more than 3 cents off the live rate, walk away.
That $700 is a decent chunk of change—it's a weekend at a nice hotel in Montreal or a few weeks of groceries in Calgary. Don't let a bad exchange rate shave $50 off the top for no reason.
Stay away from the convenience of the airport and the "safety" of the big bank teller windows if you want to keep your money where it belongs. In your pocket.
Pro-tip: If you're withdrawing from a Canadian ATM using a US card, and the machine asks "Would you like to be charged in USD or CAD?", always choose CAD. Choosing USD lets the ATM owner set their own (terrible) exchange rate. Let your own bank handle the conversion; it's almost always cheaper.