Bank of Canada Historical Exchange Rates

Updated

September 26, 2022

The Bank of Canada (Banque du Canada) is Canada’s central bank and the sole authority permitted under the Bank Act to issue Canadian banknotes and formulate monetary policies in the Great White North.

As part of its responsibilities, the Bank of Canada promotes the country’s economic and financial welfare by ensuring that inflation is stable, low, and predictable.

The Bank of Canada is a banker’s bank actively involved in the foreign currency exchange market. The bank issues daily (noon and closing) rates, monthly rates, and annual exchange rates are obtained from the averages of aggregated quotes from financial institutions.

CEER vs. CERI

Using a methodology based on the current international best practices, the Bank of Canada scrapped the Canadian Exchange Rate Index (CERI). It replaced it with the Canadian Effective Exchange Rate (CEER) index. The bank publishes daily data for the CEER index to incorporate its bilateral exchange rates with its significant trading partners.

The CEER provides an accurate measure of Canada’s international competitiveness. It shows how the Canadian economy’s exchange rate affects its competitors in the global financial and trade markets.

Before adopting the Canadian Effective Exchange Rate (CEER) index, the Bank of Canada published the Canadian-Dollar Effective Exchange Rate Index (CERI) from 2006 till 2017. The CEER publication came into effect in January 2018 to address the drawbacks of the CERI.

The CEER is the average (weighted) of the Canadian dollar’s bilateral exchange rates against Canada’s major trading partners’ currencies. These major trading partners account for at least 0.5% of Canada’s non-oil exports and imports.

The Implication of the CEER Increase and Decrease on Canada’s Economy

An increasing Canadian Effective Exchange Rate (CEER) index makes imported products less expensive and price-competitive against local goods. The increase in the CEER index makes Canadian exports more expensive in foreign markets.

Similarly, when the Canadian dollar depreciates, it positively affects Canadian products, such that the products are more attractive, affordable, and price-appealing in the international market.

CEER Trends and the Canadian Dollar

The Canadian dollar’s value (exchange rate) is often susceptible to crude oil and other commodities’ global price movement. Similarly, the Canadian dollar shares strong ties with the US dollar and the United States economy. This is because the United States is Canada’s biggest trading partner.

As a result, the Canadian dollar (CAD) has a fluctuating rate. Whenever there’s a decline in oil prices, it’s expected that there will be an overall depreciation of the Canadian dollar.

How the Exchange Rate Works

The Canadian dollar is a floating currency. The value or exchange rate of the Canadian dollar is determined by several factors, including the foreign exchange market. One such determinant is the demand and supply of the currency. The Canadian dollar rises and falls according to its buy and sell order in the forex market.

Some of the factors that affect the rise and fall of the Canadian dollar include:

The demand for Canadian goods and services – the higher the demand, the higher the value of the CAD.
The strength of the Canadian economy compared to other countries economies.
The interest rate and inflation rate relative to other countries.
The demand for Canadian stocks, bonds, ETFs, and other financial securities.

Bank of Canada Foreign Exchange Rates

The Bank of Canada publishes daily average exchange rates for Canada’s major trading partners and global trading currencies, using the mid-market quotes for each currency pair.

The apex bank publishes the daily, monthly, and annual averages of each currency, as well as the Canadian-dollar Effective Exchange Rates (CEER)

Available Currencies

The following are the top global trading currencies relative to the Canadian dollar:

Australian dollar (AUD)
Brazilian real (BRL)
Chinese renminbi (CNY)
European euro (EUR)
Hong Kong dollar (HKD)
Indian rupee (INR)
Indonesian rupiah (IDR)
Japanese yen (JPY)
Mexican peso (MXN)
New Zealand dollar (NZD)
Norwegian krone (NOK)
Peruvian new sol (PEN)
Russian ruble (RUB)
Saudi riyal (SAR)
Singapore dollar (SGD)
South African rand (ZAR)
South Korean won (KRW)
Swedish krona (SEK)
Swiss franc (CHF)
Taiwanese Dollar (TWD)
Turkish lira (TRY)
UK pound sterling (GBP)
US dollar (USD)

Bank of Canada Annual Exchange Rates

The Bank of Canada publishes the annual average exchange rates by 12:30 ET on the last business day of every year using the CEER index. These rates are expressed as a single unit of foreign currency converted into Canadian dollars.

Currency	2017	2018	2019	2020
Australian Dollar (AUD)	0.9951	0.9687	0.9228	0.9247
Brazilian real (BRL)	0.4071	0.3566	0.3371	0.2625
Chinese renminbi (CNY)	0.1921	0.1961	0.1922	0.1944
European euro (EUR)	1.4650	1.5302	1.4856	1.5298
Hong Kong dollar (HKD)	0.1667	0.1653	0.1693	0.1730
Indian rupee (INR)	0.01995	0.01897	0.01885	0.01810
Indonesian rupiah (IDR)	0.000097	0.000091	0.000094	0.000092
Japanese yen (JPY)	0.01158	0.01174	0.01217	0.01257
Mexican peso (MXN)	0.06884	0.06744	0.06894	0.06267
New Zealand dollar (NZD)	0.9229	0.8973	0.8747	0.8712
Norwegian krone (NOK)	0.1570	0.1594	0.1509	0.1427
Peruvian new sol (PEN)	0.3982	0.3943	0.3977	0.3842
Russian ruble (RUB)	0.02228	0.02071	0.02051	0.01863
Saudi riyal (SAR)	0.3463	0.3455	0.3538	0.3575
Singapore dollar (SGD)	0.9404	0.9607	0.9728	0.9722
South African rand (ZAR)	0.09767	0.09844	0.09194	0.08181
South Korean won (KRW)	0.001149	0.001178	0.001139	0.001137
Swedish krona (SEK)	0.1520	0.1492	0.1404	0.1459
Swiss franc (CHF)	1.3189	1.3246	1.3352	1.4294
Taiwanese dollar (TWD)	0.04269	0.04299	0.04294	0.04553
Turkish lira (TRY)	0.3565	0.2759	0.2340	0.1930
UK pound sterling (GBP)	1.6720	1.7299	1.6945	1.7199
US dollar (USD)	1.2986	1.2957	1.3269	1.3415