National Bank Canada says that not only is the Canadian dollar heading towards parity with the U.S. currency, but the country is well on its way to becoming a creditor for the first time ever.

“Canada’s dependence on foreign capital continues to diminish,” NBF observes. “Just-released data by Statistics Canada showed that our country’s net international investment position – the stock of external assets minus the stock of external liabilities – continued to improve in the first quarter.”

The net position is still in deficit, NBF notes, but the shortfall was only $92.2 billion, the smallest it has been since 1978. Moreover, Canada’s net external liabilities as a proportion of GDP is now down to 6.2%, the smallest on record. By comparison, the U.S. is showing a deficit equivalent to more than 20% of its GDP, it adds.

“At current pace, Canada may well be on the verge of becoming a creditor nation for the first time ever by the end of the decade,” NBF concludes, adding that this remains consistent with its forecast calling for dollar parity.