It seems that our Canadian dollar is on a wild roller coaster ride these days, rising above parity in one week and then dropping back to the low 90’s within a month. What can a smart Canadian cross-border shopper do to take advantage of the situation?

Get a US dollar account in Canada
One thing we can do to smooth out the bumps is to open a US dollar account in Canada and deposit money into it whenever the exchange rate seems favorable. An example of such an account is the “borderless” account in TD Canada Trust. These types of account allow you to store US dollar and give you a fairer exchange rate compared to your credit card company or even the regular teller counter. No one can predict the future, but having this type of account allow you the flexibility to take advantage of rates whenever they are good without having to make purchases right away.

Pay attention to store rates
Individual retailers near the border often post their own Canadian exchange rates for their store. These rates generally fluctuate with the market but are not always up to date. Just the other day, I found a Wal-Mart in the Buffalo NY area offering to take Canadian dollar at 98 cents US even though the fair rate is only 93 cents. A smart shopper could have paid with Canadian dollar instead of USD and pocket the difference.

Don’t worry, be happy
The last strategy is just simply don’t worry about the volatile exchange rate and shop for things because you like them. Ask yourself why you are shopping in the States, is it just because of lower prices, or is it because you can get stuff that you cannot closer to home? If it isn’t all about the prices, then don’t worry, and just go ahead and buy what you want, in moderation of course.

Last but not least, be sure to check out the best cross-border deals for Canadians at Wishabi.ca