Because exchange rates are nominal, your country can control it using their monetary (and to a smaller extent, fiscal) policy. You're probably only comparing because the exchange rate starts with a 1 point something.
Example :
Iceland, where you would get 80 of their currency for 1 of yours, and they'd still be more expensive than Canada.
India, where you would get 60 of their currency for 1 of yours, but they're much cheaper than Canada.
On the other side of the spectrum, 1 Kuwaiti Dinar would cost you 5 CAD, but buying everything would still be cheaper.
I can go into much more detail but this really isn't the place to do it... Just understand that exchange rate number is completely irrelevant. What matters is the PPP equivalent of the money you have.