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The short answer
Yes, a TFSA can hold US-dollar cash or investments if your provider offers a US-dollar option, but contribution room is always counted in Canadian dollars. The CRA's TFSA guide says foreign funds are converted to Canadian dollars "using the exchange rate on the date of the transaction", and the Canadian-dollar total cannot exceed your room. US dividends paid into a TFSA may still have foreign tax withheld.
The rule in one line
Nothing in the TFSA rules forbids foreign currency. The CRA's guide for individuals, RC4466, says you can contribute foreign funds and that "your issuer will convert the funds to Canadian dollars using the exchange rate on the date of the transaction". The amount that counts against your room is that Canadian-dollar figure. The online version we read was last modified on 24 January 2025 and is now marked cancelled on canada.ca, so treat it as the CRA's stated approach and check the current guidance before relying on detail.
Whether you can actually keep US dollars inside the account is a product question, not a tax one. Some banks and brokerages offer a US-dollar side to a TFSA, others convert everything to Canadian dollars on the way in and out. Ask your provider directly, because a TFSA that converts each US-dollar trade can cost more in conversion spreads than it saves.
How room is counted when you use US dollars
Room is a Canadian-dollar number. The CRA's contributing page (modified 6 January 2026) tells you to check your room in your CRA account and to verify it against your financial institution's records to avoid over-contributing.
Worked example (example figures only)
Suppose you have C$10,000 of room and contribute US$5,000 on a day when your provider's rate is 1.38 Canadian dollars per US dollar. The contribution counts as US$5,000 x 1.38 = C$6,900. You have C$3,100 of room left that year. If the US dollar is stronger the next time you contribute, the same US$5,000 uses more room.
| Step | Example figure |
|---|---|
| Room available | C$10,000 |
| Contribution | US$5,000 |
| Example rate on the day | 1.38 |
| Room used | C$6,900 |
| Room left | C$3,100 |
The rate your issuer uses is the one on its records. Keep the confirmation for each contribution so you can match it to what the CRA shows later.
Rules that matter more when you move between countries
- Over-contributing. The CRA charges 1% of the highest excess amount in each month the excess stays in the account. A currency swing between two contributions is an easy way to drift over.
- Withdrawals. Amounts you take out are added back to your room only at the start of the following year, not straight away.
- Being non-resident. Contributions made while you are a non-resident of Canada are taxed at 1% for each month they stay in the account. If you are planning a long spell in Nigeria and may stop being resident, stop contributing until you know your status.
- Foreign dividends. The guide notes that foreign dividends paid into a TFSA may be subject to foreign withholding tax. The TFSA shelters Canadian tax, not tax another country takes at source.
What a US-dollar TFSA can hold
The CRA lists money, guaranteed investment certificates, bonds and securities listed on a designated stock exchange among qualified investments. In practice, people holding US dollars inside a TFSA use one of these:
- US-dollar cash or a US-dollar deposit, where the provider offers it. CDIC lists TFSA deposits as a separate insured category and says deposits in Canadian or foreign currency are eligible, up to C$100,000 per category at a member institution.
- US-dollar ETFs or shares on an exchange. These are not deposits and CDIC says ETFs, stocks and bonds are not covered.
- A US-dollar cash-like ETF. For example, Global X's US Dollar Currency ETF trades on the Toronto Stock Exchange as DLR in Canadian dollars and DLR.U in US dollars; its page (data as at 22 October 2026) shows a 0.45% management fee. Mentioned to show how such products work, not as a recommendation.
What to check first
- Ask your provider whether its TFSA can hold US dollars without converting each trade.
- Check your room in your CRA account and against your provider's records.
- Note the Canadian-dollar value of every US-dollar contribution on the day.
- If you may become non-resident, pause contributions until your status is clear.
If you are deciding between saving in Canadian or US dollars at all, start with CAD or USD savings in Canada, and for the cost of converting at a bank see converting CAD to USD at a Canadian bank.
Where Pryme fits
A TFSA is a Canadian tax account and Pryme does not offer one. Pryme is useful alongside it for money that needs to move between Nigeria and Canada: a multicurrency account holds USD, GBP, EUR and NGN, and Swap shows the rate and the fee before you approve a conversion.
Questions people ask
Can I contribute US dollars to my TFSA?
Yes if your provider accepts them. The CRA's guide says the issuer converts the contribution to Canadian dollars at the rate on the transaction date, and that Canadian-dollar amount is what counts against your room.
Does a stronger US dollar use up more TFSA room?
Yes. Because room is counted in Canadian dollars, the same US-dollar contribution uses more room when the US dollar is worth more Canadian dollars on the day.
Are US dividends tax-free in a TFSA?
Not always. The CRA notes that foreign dividends paid into a TFSA may have foreign withholding tax taken before they arrive.
Is US-dollar cash in a TFSA covered by CDIC?
CDIC lists TFSA deposits as an insured category and says foreign-currency deposits are eligible at member institutions, up to C$100,000 per category. ETFs and shares are not covered.
Sources
- CRA Guide RC4466, Tax-Free Savings Account (TFSA), Guide for Individuals (page modified 24 Jan 2025, marked cancelled) · accessed Oct 2026
- CRA: Contributing to your TFSA (modified 6 Jan 2026) · accessed Oct 2026
- CDIC: What's covered · accessed Oct 2026
- Global X: US Dollar Currency ETF (DLR / DLR.U), data as at 22 Oct 2026 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.