Currency exchange is a major issue for Canadians to consider when planning overseas trips.
We advise Canadians carry USD instead of CAD when travelling overseas, but many of our Canadian guests travelling on our Asia tours ask why we offer such advice. If you have US dollars already like most Canadians do, you definitely should bring US dollars and here is why.
Why You Should Travel Overseas with USD
The USD is the world’s most widely accepted foreign currency while the CAD is not. Many countries, especially in Asia, Latin America, and parts of Africa, accept USD alongside their local currency.
As a matter of fact, in many countries, finding a place to exchange CAD can be difficult, whereas USD can be exchanged almost anywhere. The reason that many currency dealers refuse to accept CAD is the perceived higher risk. In times of economic uncertainty, USD is considered a stable currency, making it more reliable for transactions abroad.
When you covert USD to the local currency in a foreign country, you’d notice that the dealer’s spread between the buying rate and selling rate is much narrower than with the CAD. That means you are much worse off when you use CAD to buy the local currency.
Below is a good example:
