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Canadian dollar

The Canadian dollar (symbol: $; code: CAD; French: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $. There is no standard disambiguating form, but the abbreviations Can$, CA$ and C$ are frequently used for distinction from other dollar-denominated currencies (though C$ remains ambiguous with the Nicaraguan córdoba).[1][2][a] It is divided into 100 cents (¢).

Canadian dollar
Dollar canadien (French)
Can$, C$, CA$, CDN$, CAD
2011 Frontier series (polymer notes)
ISO 4217
CodeCAD (numeric: 124)
Subunit0.01
Unit
Unitdollar
Symbol$
NicknameLoonie, buck (in English)
Huard, piastre (pronounced piasse in popular usage) (in French)
Denominations
Subunit
1100Cent
(in English) and sou (colloquial in French)
Symbol
Cent¢
Banknotes$5, $10, $20, $50, $100
Coins
 Freq. used, 10¢, 25¢, $1, $2
 Rarely used (discontinued, still legal tender), 50¢ (still minted)
Demographics
Official user(s)Canada
Unofficial user(s)St. Pierre and Miquelon
Issuance
Central bankBank of Canada
 Websitewww.bankofcanada.ca
PrinterCanadian Bank Note Company
 Websitewww.cbnco.com
MintRoyal Canadian Mint
 Websitewww.mint.ca
Valuation
Inflation3.4% (December 2023)
 SourceStatistics Canada
 MethodConsumer price index

Owing to the image of a common loon on its reverse, the dollar coin, and sometimes the unit of currency itself, may be referred to as the loonie by English-speaking Canadians and foreign exchange traders and analysts.[3]

Accounting for approximately 2% of all global reserves, the Canadian dollar is the sixth-most held reserve currency in the world, behind the U.S. dollar, euro, yen, sterling, and renminbi.[4] The Canadian dollar is popular with central banks because of Canada's relative economic soundness, the Canadian government's strong sovereign position, and the stability of the country's legal and political systems.[5][6][7][8][9]

History edit

Colonial currencies edit

The 1850s in Canada were a decade of debate over whether to adopt a £sd-based monetary system or a decimal monetary system based on the US dollar. The British North American provinces, for reasons of practicality in relation to the increasing trade with the neighbouring United States, had a desire to assimilate their currencies with the American unit, but the imperial authorities in London still preferred sterling as the sole currency throughout the British Empire. The British North American provinces nonetheless gradually adopted currencies tied to the American dollar.

Currencies used in Canada and its predecessors
Currency Dates in use Value in (pre-decimal) sterling Value in Canadian dollars
Canadian pound 1841–1858 16s 5.3d $4
Canadian dollar 1858–present 4s 1.3d $1
New Brunswick dollar 1860–1867
British Columbia dollar 1865–1871
Prince Edward Island dollar 1871–1873
Nova Scotian dollar 1860–1871 4s $0.973
Newfoundland dollar 1865–1895 4s 2d $1.014
1895–1949 4s 1.3d $1

Province of Canada edit

In 1841, the Province of Canada adopted a new system based on the Halifax rating. The new Canadian pound was equal to four US dollars (92.88 grains gold), making £1 sterling equal to £1.4s.4d. Canadian. Thus, the new Canadian pound was worth 16 shillings and 5.3 pence sterling.

In 1851, the Parliament of the Province of Canada passed an act for the purposes of introducing a sterling-based unit in conjunction with decimal fractional coinage. The idea was that the decimal coins would correspond to exact amounts in relation to the U.S. dollar fractional coinage.

 
A Province of Canada one-dollar note issued by the Colonial Bank of Canada, 1859

In response to British concerns, in 1853, an act of the Parliament of the Province of Canada introduced the gold standard into the colony, based on both the British gold sovereign and the American gold eagle coins. This gold standard was introduced with the gold sovereign being legal tender at £1 = US$4.86+23. No coinage was provided for under the 1853 act. Sterling coinage was made legal tender and all other silver coins were demonetized. The British government in principle allowed for a decimal coinage but nevertheless held out the hope that a sterling unit would be chosen under the name of "royal". However, in 1857, the decision was made to introduce a decimal coinage into the Province of Canada in conjunction with the U.S. dollar unit. Hence, when the new decimal coins were introduced in 1858, the colony's currency became aligned with the U.S. currency, although the British gold sovereign continued to remain legal tender at the rate of £1 = Can$4.86+23 right up until the 1990s. In 1859, Canadian colonial postage stamps were issued with decimal denominations for the first time. In 1861, Canadian postage stamps were issued with the denominations shown in dollars and cents.

Maritime colonies edit

In 1860, the colonies of New Brunswick and Nova Scotia followed the Province of Canada in adopting a decimal system based on the U.S. dollar unit.

In 1871, Prince Edward Island went decimal within the U.S. dollar unit and introduced coins in the denomination of 1 cent. However, the currency of Prince Edward Island was absorbed into the Canadian system shortly afterwards, when Prince Edward Island joined the Dominion of Canada in 1873.

Newfoundland edit

Newfoundland went decimal in 1865, but unlike the Province of Canada, New Brunswick, and Nova Scotia, it decided to adopt a unit based on the Spanish dollar rather than on the U.S. dollar, and there was a slight difference between these two units. The U.S. dollar was created in 1792 on the basis of the average weight of a selection of worn Spanish dollars. As such, the Spanish dollar was worth slightly more than the U.S. dollar, and likewise, the Newfoundland dollar, until 1895, was worth slightly more than the Canadian dollar.

British Columbia edit

The Colony of British Columbia adopted the British Columbia dollar as its currency in 1865, at par with the Canadian dollar. When British Columbia joined Canada as its sixth province in 1871, the Canadian dollar replaced the British Columbia dollar.

Post-Confederation history edit

In 1867, the Province of Canada, New Brunswick, and Nova Scotia united into a federation named Canada. As a result, their respective currencies were merged into a singular Canadian dollar. The Canadian Parliament passed the Uniform Currency Act in April 1871,[10] tying up loose ends as to the currencies of the various provinces and replacing them with a common Canadian dollar.

The gold standard was temporarily abandoned during World War I and definitively abolished on April 10, 1933. At the outbreak of World War II, the exchange rate to the U.S. dollar was fixed at Can$1.10 = US$1.00. This was changed to parity in 1946. In 1949, sterling was devalued and Canada followed, returning to a peg of Can$1.10 = US$1.00. However, Canada allowed its dollar to float in 1950, whereupon the currency rose to a slight premium over the U.S. dollar for the next decade. But the Canadian dollar fell sharply after 1960 before it was again pegged in 1962 at Can$1.00 = US$0.925. This was sometimes pejoratively referred to as the "Diefenbuck" or the "Diefendollar", after the then Prime Minister, John Diefenbaker. This peg lasted until 1970, with the currency's value being floated since then.

Terminology edit

 
The one- and two-dollar coins, nicknamed the loonie and toonie

Canadian English, similar to American English, used the slang term "buck" for a former paper dollar. The Canadian origin of this term derives from a coin struck by the Hudson's Bay Company during the 17th century with a value equal to the pelt of a male beaver – a "buck".[11] Because of the appearance of the common loon on the back of the $1 coin that replaced the dollar bill in 1987, the word loonie was adopted in Canadian parlance to distinguish the Canadian dollar coin from the dollar bill. When the two-dollar coin was introduced in 1996, the derivative word toonie ("two loonies") became the common word for it in Canadian English slang.

In French, the currency is also called le dollar; Canadian French slang terms include piastre or piasse (the original word used in 18th-century French to translate "dollar") and huard (equivalent to loonie, since huard is French for "loon," the bird appearing on the coin). The French pronunciation of cent (pronounced similarly to English as /sɛnt/ or /sɛn/, not like the word for hundred, /sɑ̃/ or /sã/)[12] is generally used for the subdivision; sou is another, informal, term for 1¢. 25¢ coins in Quebec French are often called trente sous ("thirty cents") because of a series of changes in terminology, currencies, and exchange rates. After the British conquest of Canada in 1760, French coins gradually went out of use, and sou became a nickname for the halfpenny, which was similar in value to the French sou. Spanish dollars and U.S. dollars were also in use, and from 1841 to 1858, the exchange rate was fixed at $4 = £1  (or 400¢ = 240d). This made 25¢ equal to 15d, or 30 halfpence (trente sous). After decimalization and the withdrawal of halfpenny coins, the nickname sou began to be used for the 1¢ coin, but the idiom trente sous for 25¢ endured.[13]

Coins edit

 
The Royal Canadian Mint production facility in Winnipeg

Coins are produced by the Royal Canadian Mint's facilities in Winnipeg, Manitoba, and Ottawa, Ontario, in denominations of 5¢ (nickel), 10¢ (dime), 25¢ (quarter), 50¢ (50¢ piece) (though the 50¢ piece is no longer distributed to banks and is only available directly from the mint, therefore seeing very little circulation), $1 (loonie), and $2 (toonie). The last 1¢ coin (penny) to be minted in Canada was struck on May 4, 2012,[14] and distribution of the penny ceased on February 4, 2013.[15] Ever since, the price for a cash transaction is rounded to the nearest five cents. The penny continues to be legal tender, although they are only accepted as payment and not given back as change.

The standard set of designs has Canadian symbols, usually wildlife, on the reverse, and an effigy of Elizabeth II on the obverse. Some pennies, nickels, and dimes remain in circulation that bear the effigy of George VI. It is also common for American coins to be found among circulation due to the close proximity to the United States and the fact that the sizes of the coins are similar. Commemorative coins with differing reverses are also issued on an irregular basis, most often quarters. 50¢ coins are rarely found in circulation; they are often collected and not regularly used in day-to-day transactions in most provinces.

Coin history edit

 
Engraving of a Canadian fifty-cent coin, issued in 1871

In 1858, bronze 1¢ and 0.925 silver 5¢, 10¢ and 20¢ coins were issued by the Province of Canada. Except for 1¢ coins struck in 1859, no more coins were issued until 1870, when production of the 5¢ and 10¢ was resumed and silver 25¢ and 50¢ were introduced. Between 1908 and 1919, sovereigns (legal tender in Canada for $4.86+23) were struck in Ottawa with a "C" mintmark.

Canada produced its first gold dollar coins in 1912 in the form of $5 and $10. These coins were produced from 1912 to 1914. The obverse carries an image of King George V and on the reverse is a shield with the arms of the Dominion of Canada. Gold from the Klondike River valley in the Yukon accounts for much of the gold in the coins.

Two years into the coin's production World War I began and production of the coins stopped in favour of tighter control over Canadian gold reserves. Most of the 1914 coins produced never reached circulation at the time and some were stored for more than 75 years until being sold off in 2012. The high quality specimens were sold to the public and the visually unappealing ones were melted.[16]

In 1920, the size of the 1¢ was reduced and the silver fineness of the 5¢, 10¢, 25¢ and 50¢ coins was reduced to 0.800 silver/.200 copper. This composition was maintained for the 10¢, 25¢ and 50¢ piece through 1966, but the debasement of the 5¢ piece continued in 1922 with the silver 5¢ being entirely replaced by a larger nickel coin. In 1942, as a wartime measure, nickel was replaced by tombac in the 5¢ coin, which was changed in shape from round to dodecagonal. Chromium-plated steel was used for the 5¢ in 1944 and 1945 and between 1951 and 1954, after which nickel was readopted. The 5¢ returned to a round shape in 1963.

 
Five-cent coin, issued 1942
 
Five-cent coin, issued 1964
Several Canadian coins, like the five-cent coin, underwent changes in composition and shape in the 20th century.

In 1935, the 0.800 silver voyageur dollar was introduced. Production was maintained through 1967 with the exception of the war years between 1939 and 1945.

In 1967 both 0.800 silver/0.200 copper and, later that year, 0.500 silver/.500 copper 10¢ and 25¢ coins were issued. 1968 saw further debasement: the 0.500 fine silver dimes and quarters were completely replaced by nickel ones mid-year. All 1968 50¢ and $1 coins were reduced in size and coined only in pure nickel. Thus, 1968 marked the last year in which any circulating silver coinage was issued in Canada.

In 1982, the 1¢ coin was changed to dodecagonal, and the 5¢ was further debased to a cupro-nickel alloy. In 1987 a $1 coin struck in aureate-plated nickel was introduced. A bimetallic $2 coin followed in 1996. In 1997, copper-plated zinc replaced bronze in the 1¢, and it returned to a round shape. This was followed, in 2000, by the introduction of even cheaper plated-steel 1¢, 5¢, 10¢, 25¢ and 50¢ coins, with the 1¢ plated in copper and the others plated in cupro-nickel. In 2012, the multi-ply plated-steel technology was introduced for $1 and $2 coins as well. Also in that year mintage of the 1¢ coin ceased and its withdrawal from circulation began in 2013.

Banknotes edit

 
An 1892 five-dollar note issued by the Bank of Hamilton. Early Canadian dollar notes were issued by Canadian charter banks.

The first paper money issued in Canada denominated in dollars were British Army bills, issued between 1813 and 1815. Canadian dollar banknotes were later issued by the chartered banks starting in the 1830s, by several pre-Confederation colonial governments (most notably the Province of Canada in 1866), and after confederation, by the Canadian government starting in 1870. Some municipalities also issued notes, most notably depression scrip during the 1930s.[17]

On July 3, 1934,[18][failed verification] with only 10 chartered banks still issuing notes, the Bank of Canada was founded. This new government agency became the sole issuer of all federal notes. In 1935, it issued its first series of notes in denominations of $1, $2, $5, $10, $20, $25, $50, $100, $500 and $1000. The $25 note was a commemorative issue, released to mark the Silver Jubilee of King George V.[19] In 1944, the chartered banks were prohibited from issuing their own currency, with the Royal Bank of Canada and the Bank of Montreal among the last to issue notes.

 
The Bank of Canada headquarters. The Bank of Canada is the sole issuer of federal notes.

Significant design changes to the notes have occurred since 1935, with new series introduced in 1937, 1954, 1970, 1986, and 2001. In June 2011, newly designed notes printed on a polymer substrate, as opposed to cotton fibre, were announced; the first of these polymer notes, the $100 bill, began circulation on November 14, 2011, the $50 bill began circulation on March 26, 2012, the $20 denomination began circulation on November 7, 2012, and the $5 and $10 denominations began circulation on November 12, 2013.

Since 1935, all banknotes are printed by the Ottawa-based Canadian Bank Note Company under contract to the Bank of Canada. Previously, a second company, BA International (founded in 1866 as the British American Bank Note Company), shared printing duties. In 2011, BA International announced it would close its banknote printing business and cease printing banknotes at the end of 2012;[20] since then, the Canadian Bank Note Company has been the sole printer of Canadian banknotes.

All banknotes from series prior to the current polymer series are now considered unfit for circulation due to their lacking of any modern security features, such as a metallic stripe.[21] Financial institutions must return the banknotes to the Bank of Canada, which will then destroy them.[21] Individuals may keep the banknotes indefinitely.[22]

Legal tender edit

As of January 1, 2021, the $1, $2, $25, $500 and $1000 notes issued by the Bank of Canada are no longer legal tender.[23] All other current and prior Canadian dollar banknotes issued by the Bank of Canada remain as legal tender in Canada. However, commercial transactions may legally be settled in any manner agreed by the parties involved.

Legal tender of Canadian coinage is governed by the Currency Act, which sets out limits of:[24]

  • $40 if the denomination is $2 or greater but does not exceed $10;
  • $25 if the denomination is $1;
  • $10 if the denomination is 10¢ or greater but less than $1;
  • $5 if the denomination is 5¢;
  • 25¢ if the denomination is 1¢.

Retailers in Canada may refuse bank notes without breaking the law. According to legal guidelines, the method of payment has to be mutually agreed upon by the parties involved with the transactions. For example, stores may refuse $100 banknotes if they feel that would put them at risk of being counterfeit victims; however, official policy suggests that the retailers should evaluate the impact of that approach. In the case that no mutually acceptable form of payment can be found for the tender, the parties involved should seek legal advice.[25]

Canadian dollars, especially coins, are accepted by some businesses in the northernmost cities of the United States and in many Canadian snowbird enclaves, just as U.S. dollars are accepted by some Canadian businesses.[26]

In 2012, Iceland considered adopting the Canadian dollar as a stable alternative to the Icelandic króna.[27][28] Canada was favoured due to its northern geography and similar resource-based economy, in addition to its relative economic stability.[29][30] The Canadian ambassador to Iceland said that Iceland could adopt the currency; although Iceland ultimately decided not to move on with the proposal.[31]

Value edit

 
The cost of one United States dollar in Canadian dollars from 1990
 
The cost of one Euro in Canadian dollars from 1999

Since 76.7% of Canada's exports go to the U.S., and 53.3% of imports into Canada come from the U.S.,[32] Canadians are interested in the value of their currency mainly against the U.S. dollar. Although domestic concerns arise when the dollar trades much lower than its U.S. counterpart, there is also concern among exporters when the dollar appreciates quickly. A rise in the value of the dollar increases the price of Canadian exports to the U.S. On the other hand, there are advantages to a rising dollar, in that it is cheaper for Canadian industries to purchase foreign material and businesses.

The Bank of Canada currently has no specific target value for the Canadian dollar and has not intervened in foreign exchange markets since 1998.[33] The Bank's official position is that market conditions should determine the worth of the Canadian dollar, although it occasionally makes minor attempts to influence its value.

On world markets, the Canadian dollar historically tended to move in tandem with the U.S. dollar.[34] An apparently rising Canadian dollar (against the U.S. dollar) was decreasing against other international currencies; however, during the rise of the Canadian dollar between 2002 and 2013, it gained value against the U.S. dollar as well as other international currencies. In recent years, dramatic fluctuations in the value of the Canadian dollar have tended to correlate with shifts in oil prices, reflecting the Canadian dollar's status as a petrocurrency owing to Canada's significant oil exports.[35]

The Canadian dollar traded at a record high of US$2.78 in terms of American greenbacks on July 11, 1864, since the latter was inconvertible paper currency.[36] However, the Canadian dollar remained close to par or 1:1 versus the gold or silver US dollar of the time.

Unlike other currencies in the Bretton Woods system, whose values were fixed, the Canadian dollar was allowed to float from 1950 to 1962. Between 1952 and 1960, the Canadian dollar traded at a slight premium over the U.S. dollar, reaching a high of US$1.0614 on August 20, 1957.[36]

The Canadian dollar fell considerably after 1960, and this contributed to Prime Minister John Diefenbaker's defeat in the 1963 election. The Canadian dollar returned to a fixed exchange rate regime in 1962 when its value was set at US$0.925, where it remained until 1970.[36]

As an inflation-fighting measure, the Canadian dollar was allowed to float in 1970. Its value appreciated and it was worth more than the U.S. dollar for part of the 1970s. The high point was on April 25, 1974, when it reached US$1.0443.[37]

The Canadian dollar fell in value against its American counterpart during the technological boom of the 1990s that was centred in the United States, and was traded for as little as US$0.6179 on January 21, 2002, which was an all-time low.[38] Since then, its value against all major currencies rose until 2013, due in part to high prices for commodities (especially oil) that Canada exports.[39]

The Canadian dollar's value against the U.S. dollar rose sharply in 2007 because of the continued strength of the Canadian economy and the U.S. currency's weakness on world markets. During trading on September 20, 2007, it met the U.S. dollar at parity for the first time since November 25, 1976.[40]

Inflation in the value of the Canadian dollar has been fairly low since the 1990s. In 2007 the Canadian dollar rebounded, soaring 23% in value.[36]

On September 28, 2007, the Canadian dollar closed above the U.S. dollar for the first time in 30 years, at US$1.0052.[41] On November 7, 2007, it hit US$1.1024 during trading, a modern-day high[42] after China announced it would diversify its US$1.43 trillion foreign exchange reserve away from the U.S. dollar. By November 30, however, the Canadian dollar was once again at par with the U.S. dollar, and on December 4, the dollar had retreated back to US$0.98, through a cut in interest rates made by the Bank of Canada due to concerns about exports to the U.S.

Due to its soaring value and new record highs at the time, the Canadian dollar was named the Canadian Newsmaker of the Year for 2007 by the Canadian edition of Time magazine.[43]

Since the late 2000s, the Canadian dollar has been valued at levels comparable to the years before its swift rise in 2007. For most of the 2010s, the exchange rate of Canadian to US dollars was approximately US$0.70 to Can$1.00.[44]

Reserve currency edit

Most traded currencies by value
Currency distribution of global foreign exchange market turnover[45]
Rank Currency ISO 4217
code
Symbol or
abbreviation
Proportion of daily volume Growth rate (2019-2022)
April 2019 April 2022
1 U.S. dollar USD US$ 88.3% 88.5%   0.2%
2 Euro EUR 32.3% 30.5%   5.5%
3 Japanese yen JPY ¥ / 16.8% 16.7%   0.6%
4 Sterling GBP £ 12.8% 12.9%   0.7%
5 Renminbi CNY ¥ / 4.3% 7.0%   62.7%
6 Australian dollar AUD A$ 6.8% 6.4%   5.8%
7 Canadian dollar CAD C$ 5.0% 6.2%   24%
8 Swiss franc CHF CHF 4.9% 5.2%   6.1%
9 Hong Kong dollar HKD HK$ 3.5% 2.6%   25.7%
10 Singapore dollar SGD S$ 1.8% 2.4%   33.3%
11 Swedish krona SEK kr 2.0% 2.2%   10%
12 South Korean won KRW ₩ / 2.0% 1.9%   5%
13 Norwegian krone NOK kr 1.8% 1.7%   5.5%
14 New Zealand dollar NZD NZ$ 2.1% 1.7%   19%
15 Indian rupee INR 1.7% 1.6%   5.8%
16 Mexican peso MXN $ 1.7% 1.5%   11.7%
17 New Taiwan dollar TWD NT$ 0.9% 1.1%   22.2%
18 South African rand ZAR R 1.1% 1.0%   9%
19 Brazilian real BRL R$ 1.1% 0.9%   18.1%
20 Danish krone DKK kr 0.6% 0.7%   16.6%
21 Polish złoty PLN 0.6% 0.7%   16.6%
22 Thai baht THB ฿ 0.5% 0.4%   20%
23 Israeli new shekel ILS 0.3% 0.4%   33.3%
24 Indonesian rupiah IDR Rp 0.4% 0.4%   0%
25 Czech koruna CZK 0.4% 0.4%   0%
26 UAE dirham AED د.إ 0.2% 0.4%   100%
27 Turkish lira TRY 1.1% 0.4%   63.6%
28 Hungarian forint HUF Ft 0.4% 0.3%   25%
29 Chilean peso CLP CLP$ 0.3% 0.3%   0%
30 Saudi riyal SAR 0.2% 0.2%   0%
31 Philippine peso PHP 0.3% 0.2%   33.3%
32 Malaysian ringgit MYR RM 0.2% 0.2%   0%
33 Colombian peso COP COL$ 0.2% 0.2%   0%
34 Russian ruble RUB 1.1% 0.2%   81.8%
35 Romanian leu RON L 0.1% 0.1%   0%
36 Peruvian sol PEN S/ 0.1% 0.1%   0%
37 Bahraini dinar BHD .د.ب 0.0% 0.0%   0%
38 Bulgarian lev BGN BGN 0.0% 0.0%   0%
39 Argentine peso ARS ARG$ 0.1% 0.0%   100%
Other 1.8% 2.3%   27.7%
Total[b] 200.0% 200.0%

A number of central banks (and commercial banks) keep Canadian dollars as a reserve currency. The Canadian dollar is considered to be a benchmark currency.[citation needed]

In the economy of the Americas, the Canadian dollar plays a similar role to that of the Australian dollar (AUD) in the Asia-Pacific region. The Canadian dollar (as a regional reserve currency for banking) has been an important part of the British, French and Dutch Caribbean states' economies and finance systems since the 1950s. The Canadian dollar is held by many central banks in Central and South America as well.[46][citation needed]

By observing how the Canadian dollar behaves against the U.S. dollar, foreign exchange economists can indirectly observe internal behaviours and patterns in the U.S. economy that could not be seen by direct observation. The Canadian dollar has fully evolved into a global reserve currency only since the 1970s, when it was floated against all other world currencies. Some economists have attributed the rise of importance of the Canadian dollar to the long-term effects of the Nixon Shock that effectively ended the Bretton Woods system of global finance.[47]

Exchange rates edit

 
USD/CAD exchange rate
Current CAD exchange rates
From Google Finance: AUD CHF CNY EUR GBP HKD JPY USD
From Yahoo! Finance: AUD CHF CNY EUR GBP HKD JPY USD
From XE.com: AUD CHF CNY EUR GBP HKD JPY USD
From OANDA: AUD CHF CNY EUR GBP HKD JPY USD

See also edit

Notes edit

  1. ^ There are various common abbreviations to distinguish the Canadian dollar from others: while the ISO 4217 currency code "CAD" (a three-character code without monetary symbols) is common, no single system is universally accepted. The World Bank, Editing Canadian English and The Canadian Style guide all indicate "Can$". "C$" is the symbol for the Nicaraguan córdoba, and as such is discouraged by The Canadian Style guide. Editing Canadian English also indicates "CDN$"; both style guides note the ISO code.
  2. ^ The total sum is 200% because each currency trade is counted twice: once for the currency being bought and once for the one being sold. The percentages above represent the proportion of all trades involving a given currency, regardless of which side of the transaction it is on. For example, the US dollar is bought or sold in 88% of all currency trades, while the euro is bought or sold in 31% of all trades.

References edit

Citations edit

  1. ^ "Canadian dollar (Symbol) (Linguistic recommendation from the Translation Bureau)". Translation Bureau. October 15, 2015. from the original on February 19, 2020. Retrieved October 2, 2021. In an English document, when you need to specify the type of dollar (Canadian, American, Australian, etc.), the Translation Bureau recommends using the symbol Can$ to represent the Canadian dollar. ... The shorter variant C$ is another symbol frequently used for the Canadian dollar. However, the Translation Bureau does not recommend this symbol, since it has a slight risk of ambiguity: it is also used to represent the Nicaraguan córdoba oro, and occasionally the Cayman Islands dollar as well.
  2. ^ "World Bank Editorial Style Guide 2020 – page 135" (PDF). openknowledge.worldbank.org. Retrieved August 27, 2022.
  3. ^ "Report on Business: Great time for European vacation as loonie hits record high against euro". The Globe and Mail. July 12, 2012. from the original on May 5, 2018. Retrieved November 9, 2014.
  4. ^ "Currency Composition of Official Foreign Exchange Reserves (COFER)". International Monetary Fund. 2022. Retrieved April 21, 2023.
  5. ^ "Canada's resilience has foreign central banks loading up on loonies". The Globe and Mail. May 13, 2014. from the original on March 5, 2016. Retrieved November 9, 2014.
  6. ^ "What's lifting the high-flying loonie?". The Globe and Mail. September 19, 2012. from the original on March 4, 2016. Retrieved November 9, 2014.
  7. ^ "Seven reasons to invest in Canada now". The Globe and Mail. March 11, 2013. from the original on January 21, 2017. Retrieved November 9, 2014.
  8. ^ "China likely sitting on billions of Canadian dollars". The Globe and Mail. October 2, 2015. from the original on June 15, 2018. Retrieved January 13, 2016.
  9. ^ "Why a world in turmoil is still parking its cash in Canada — lots of cash". The National Post. December 31, 2015. from the original on May 12, 2018. Retrieved January 13, 2016.
  10. ^ . Canadian Economy Online, Government of Canada. Archived from the original on February 21, 2008. Retrieved February 18, 2008.
  11. ^ Heritage, Canadian (December 14, 2017). "Official symbols of Canada - Canada.ca". www.canada.ca. from the original on December 24, 2019. Retrieved April 25, 2018.
  12. ^ Guilloton, Noëlle; Cajolet-Laganière, Hélène (2005). Le français au bureau. Les publications du Québec. p. 467. ISBN 2-551-19684-1.
  13. ^ Farid, Frédéric (September 26, 2008). "Pourquoi trente sous = 25 cents ?". from the original on October 23, 2017. Retrieved October 6, 2010.
  14. ^ "Canada's Last Penny minted". CBC. May 4, 2012. from the original on September 4, 2012. Retrieved May 28, 2012.
  15. ^ "Canadian Penny Discontinued: Feb. 4 Marks The Official End Of Canada's Copper-Coloured Coin". Huffington Post Canada. February 1, 2013. from the original on July 20, 2013. Retrieved June 28, 2013.
  16. ^ "A National Treasure Resurfaces as the Royal Canadian Mint Offers Rare Opportunity to Own Canada's First Gold Coins, Crafted With Pride From 1912-1914". www.mint.ca. from the original on December 22, 2015. Retrieved December 15, 2015.
  17. ^ Khakase, Sandeip (2017). Demonetisation: Monumental Blunder or Masterstroke. People's Literature. ISBN 978-81-932525-5-0.
  18. ^ Linzmayer, Owen. "Canada". The Banknote Book. San Francisco, CA: CDN Publishing. from the original on August 29, 2012. Retrieved December 19, 2023.
  19. ^ "1935: The First Series". www.bankofcanadamuseum.ca. Retrieved May 26, 2022.
  20. ^ . PrintAction. December 2, 2011. Archived from the original on December 20, 2013. Retrieved January 28, 2013.
  21. ^ a b "Unfit Bank Notes" (PDF). bankofcanada.ca. Bank of Canada. October 2012. (PDF) from the original on January 27, 2020. Retrieved January 15, 2020.
  22. ^ CBC News 2000.
  23. ^ "About legal tender". www.bankofcanada.ca. from the original on August 13, 2021. Retrieved August 19, 2021.
  24. ^ "BILL C-41 – As passed by the House of Commons". Parliament of Canada. from the original on May 25, 2011. Retrieved December 31, 2008.
  25. ^ . Royal Canadian Mounted Police. Archived from the original on February 15, 2008. Retrieved February 17, 2008.
  26. ^ "6 US Destinations That Will Accept Canadian Money Without Converting It". NARCITY. March 14, 2016. from the original on February 12, 2019. Retrieved February 11, 2019.
  27. ^ Mckenna, Barrie (March 2, 2012). . The Globe and Mail. Archived from the original on March 4, 2012. Retrieved March 4, 2012.
  28. ^ Hopper, Tristin (May 15, 2012). "If Iceland adopts the loonie, Greenland could soon follow: economist". The National Post. Retrieved May 15, 2012.
  29. ^ McKenna, Barrie (March 2, 2012). . The Globe and Mail. Archived from the original on March 2, 2012. Retrieved March 3, 2012.
  30. ^ "Canada ready to discuss letting Iceland use its dollar". icenews.is. from the original on March 4, 2012. Retrieved March 8, 2012.
  31. ^ Babad, Michael (September 24, 2012). "Canadian dollar a 'poor choice' for Iceland, central bank says". The Globe and Mail. from the original on January 5, 2013. Retrieved November 24, 2012.
  32. ^ Central Intelligence Agency. "The World Factbook – Canada". from the original on September 22, 2021. Retrieved June 16, 2016.
  33. ^ "Understanding exchange rates". www.bankofcanada.ca. from the original on August 30, 2020. Retrieved October 8, 2020.
  34. ^ "XE Currency Charts: USD to CAD". XE.com. from the original on December 5, 2017. Retrieved February 11, 2019.
  35. ^ . March 12, 2013. Archived from the original on February 22, 2014. Retrieved March 16, 2013.
  36. ^ a b c d "Canadian Dollar History". ExchangeRate.com. from the original on February 28, 2020. Retrieved May 4, 2020.
  37. ^ Powell, James (2005). A History of the Canadian Dollar. Bank of Canada. ISBN 0-660-19571-2.
  38. ^ oanda.com. . Archived from the original on July 11, 2007. Retrieved March 14, 2007.
  39. ^ "How & Why Oil Impacts The Canadian Dollar". Investopedia. October 16, 2018. from the original on February 12, 2019. Retrieved February 11, 2019.
  40. ^ "Topsy-turvy world last time loonie was on par with greenback". Canadian Press. September 20, 2007. Archived from the original on June 9, 2007. Retrieved September 21, 2007.
  41. ^ . ctv.ca. Archived from the original (.html) on October 12, 2007. Retrieved September 28, 2007.
  42. ^ Grant, Tavia (November 7, 2007). "China sends loonie flying above $1.10". The Globe and Mail. from the original on December 1, 2008. Retrieved November 7, 2007.
  43. ^ . Cbc.ca. December 20, 2007. Archived from the original on June 5, 2008. Retrieved March 2, 2011.
  44. ^ "XE: CAD / USD Currency Chart. Canadian Dollar to US Dollar Rates". www.xe.com. from the original on January 10, 2020. Retrieved October 8, 2020.
  45. ^ "Triennial Central Bank Survey Foreign exchange turnover in April 2022" (PDF). Bank for International Settlements. October 27, 2022. p. 12. (PDF) from the original on October 27, 2022. Retrieved October 29, 2022.
  46. ^ "Canadian dollar gaining ground as reserve currency, IMF data shows". ca.news.yahoo.com. October 2, 2014. from the original on May 9, 2021. Retrieved October 8, 2020.
  47. ^ "A Look At The History Of The Canadian Dollar". KnightsBridgeFX. from the original on February 12, 2019. Retrieved February 11, 2019.

Sources edit

External links edit

  • New Canadian $100 Bank Note (2011) on YouTube
  • Royal Canadian Mint
  • Canadian Paper Money - historical banknotes (in English and German)
  • re:politics: The Canadian Dollar
  • Bank of Canada – Exchange rate lookup
  • Bank of Canada — Bank notes

canadian, dollar, symbol, code, french, dollar, canadien, currency, canada, abbreviated, with, dollar, sign, there, standard, disambiguating, form, abbreviations, frequently, used, distinction, from, other, dollar, denominated, currencies, though, remains, amb. The Canadian dollar symbol code CAD French dollar canadien is the currency of Canada It is abbreviated with the dollar sign There is no standard disambiguating form but the abbreviations Can CA and C are frequently used for distinction from other dollar denominated currencies though C remains ambiguous with the Nicaraguan cordoba 1 2 a It is divided into 100 cents Canadian dollarDollar canadien French Can C CA CDN CAD2011 Frontier series polymer notes ISO 4217CodeCAD numeric 124 Subunit0 01UnitUnitdollarSymbol NicknameLoonie buck in English Huard piastre pronounced piasse in popular usage in French DenominationsSubunit 1 100Cent in English and sou colloquial in French Symbol Cent Banknotes 5 10 20 50 100Coins Freq used5 10 25 1 2 Rarely used1 discontinued still legal tender 50 still minted DemographicsOfficial user s CanadaUnofficial user s St Pierre and MiquelonIssuanceCentral bankBank of Canada Websitewww wbr bankofcanada wbr caPrinterCanadian Bank Note Company Websitewww wbr cbnco wbr comMintRoyal Canadian Mint Websitewww wbr mint wbr caValuationInflation3 4 December 2023 SourceStatistics Canada MethodConsumer price indexOwing to the image of a common loon on its reverse the dollar coin and sometimes the unit of currency itself may be referred to as the loonie by English speaking Canadians and foreign exchange traders and analysts 3 Accounting for approximately 2 of all global reserves the Canadian dollar is the sixth most held reserve currency in the world behind the U S dollar euro yen sterling and renminbi 4 The Canadian dollar is popular with central banks because of Canada s relative economic soundness the Canadian government s strong sovereign position and the stability of the country s legal and political systems 5 6 7 8 9 Contents 1 History 1 1 Colonial currencies 1 1 1 Province of Canada 1 1 2 Maritime colonies 1 1 3 Newfoundland 1 1 4 British Columbia 1 2 Post Confederation history 2 Terminology 3 Coins 3 1 Coin history 4 Banknotes 5 Legal tender 6 Value 7 Reserve currency 8 Exchange rates 9 See also 10 Notes 11 References 11 1 Citations 11 2 Sources 12 External linksHistory editMain article History of the Canadian dollar Colonial currencies edit The 1850s in Canada were a decade of debate over whether to adopt a sd based monetary system or a decimal monetary system based on the US dollar The British North American provinces for reasons of practicality in relation to the increasing trade with the neighbouring United States had a desire to assimilate their currencies with the American unit but the imperial authorities in London still preferred sterling as the sole currency throughout the British Empire The British North American provinces nonetheless gradually adopted currencies tied to the American dollar Currencies used in Canada and its predecessors Currency Dates in use Value in pre decimal sterling Value in Canadian dollarsCanadian pound 1841 1858 16s 5 3d 4Canadian dollar 1858 present 4s 1 3d 1New Brunswick dollar 1860 1867British Columbia dollar 1865 1871Prince Edward Island dollar 1871 1873Nova Scotian dollar 1860 1871 4s 0 973Newfoundland dollar 1865 1895 4s 2d 1 0141895 1949 4s 1 3d 1Province of Canada edit In 1841 the Province of Canada adopted a new system based on the Halifax rating The new Canadian pound was equal to four US dollars 92 88 grains gold making 1 sterling equal to 1 4s 4d Canadian Thus the new Canadian pound was worth 16 shillings and 5 3 pence sterling In 1851 the Parliament of the Province of Canada passed an act for the purposes of introducing a sterling based unit in conjunction with decimal fractional coinage The idea was that the decimal coins would correspond to exact amounts in relation to the U S dollar fractional coinage nbsp A Province of Canada one dollar note issued by the Colonial Bank of Canada 1859In response to British concerns in 1853 an act of the Parliament of the Province of Canada introduced the gold standard into the colony based on both the British gold sovereign and the American gold eagle coins This gold standard was introduced with the gold sovereign being legal tender at 1 US 4 86 2 3 No coinage was provided for under the 1853 act Sterling coinage was made legal tender and all other silver coins were demonetized The British government in principle allowed for a decimal coinage but nevertheless held out the hope that a sterling unit would be chosen under the name of royal However in 1857 the decision was made to introduce a decimal coinage into the Province of Canada in conjunction with the U S dollar unit Hence when the new decimal coins were introduced in 1858 the colony s currency became aligned with the U S currency although the British gold sovereign continued to remain legal tender at the rate of 1 Can 4 86 2 3 right up until the 1990s In 1859 Canadian colonial postage stamps were issued with decimal denominations for the first time In 1861 Canadian postage stamps were issued with the denominations shown in dollars and cents Maritime colonies edit In 1860 the colonies of New Brunswick and Nova Scotia followed the Province of Canada in adopting a decimal system based on the U S dollar unit In 1871 Prince Edward Island went decimal within the U S dollar unit and introduced coins in the denomination of 1 cent However the currency of Prince Edward Island was absorbed into the Canadian system shortly afterwards when Prince Edward Island joined the Dominion of Canada in 1873 Newfoundland edit Newfoundland went decimal in 1865 but unlike the Province of Canada New Brunswick and Nova Scotia it decided to adopt a unit based on the Spanish dollar rather than on the U S dollar and there was a slight difference between these two units The U S dollar was created in 1792 on the basis of the average weight of a selection of worn Spanish dollars As such the Spanish dollar was worth slightly more than the U S dollar and likewise the Newfoundland dollar until 1895 was worth slightly more than the Canadian dollar British Columbia edit The Colony of British Columbia adopted the British Columbia dollar as its currency in 1865 at par with the Canadian dollar When British Columbia joined Canada as its sixth province in 1871 the Canadian dollar replaced the British Columbia dollar Post Confederation history edit In 1867 the Province of Canada New Brunswick and Nova Scotia united into a federation named Canada As a result their respective currencies were merged into a singular Canadian dollar The Canadian Parliament passed the Uniform Currency Act in April 1871 10 tying up loose ends as to the currencies of the various provinces and replacing them with a common Canadian dollar The gold standard was temporarily abandoned during World War I and definitively abolished on April 10 1933 At the outbreak of World War II the exchange rate to the U S dollar was fixed at Can 1 10 US 1 00 This was changed to parity in 1946 In 1949 sterling was devalued and Canada followed returning to a peg of Can 1 10 US 1 00 However Canada allowed its dollar to float in 1950 whereupon the currency rose to a slight premium over the U S dollar for the next decade But the Canadian dollar fell sharply after 1960 before it was again pegged in 1962 at Can 1 00 US 0 925 This was sometimes pejoratively referred to as the Diefenbuck or the Diefendollar after the then Prime Minister John Diefenbaker This peg lasted until 1970 with the currency s value being floated since then Terminology edit nbsp The one and two dollar coins nicknamed the loonie and toonieCanadian English similar to American English used the slang term buck for a former paper dollar The Canadian origin of this term derives from a coin struck by the Hudson s Bay Company during the 17th century with a value equal to the pelt of a male beaver a buck 11 Because of the appearance of the common loon on the back of the 1 coin that replaced the dollar bill in 1987 the word loonie was adopted in Canadian parlance to distinguish the Canadian dollar coin from the dollar bill When the two dollar coin was introduced in 1996 the derivative word toonie two loonies became the common word for it in Canadian English slang In French the currency is also called le dollar Canadian French slang terms include piastre or piasse the original word used in 18th century French to translate dollar and huard equivalent to loonie since huard is French for loon the bird appearing on the coin The French pronunciation of cent pronounced similarly to English as sɛnt or sɛn not like the word for hundred sɑ or sa 12 is generally used for the subdivision sou is another informal term for 1 25 coins in Quebec French are often called trente sous thirty cents because of a series of changes in terminology currencies and exchange rates After the British conquest of Canada in 1760 French coins gradually went out of use and sou became a nickname for the halfpenny which was similar in value to the French sou Spanish dollars and U S dollars were also in use and from 1841 to 1858 the exchange rate was fixed at 4 1 or 400 240d This made 25 equal to 15d or 30 halfpence trente sous After decimalization and the withdrawal of halfpenny coins the nickname sou began to be used for the 1 coin but the idiom trente sous for 25 endured 13 Coins editMain article Coins of the Canadian dollar nbsp The Royal Canadian Mint production facility in WinnipegCoins are produced by the Royal Canadian Mint s facilities in Winnipeg Manitoba and Ottawa Ontario in denominations of 5 nickel 10 dime 25 quarter 50 50 piece though the 50 piece is no longer distributed to banks and is only available directly from the mint therefore seeing very little circulation 1 loonie and 2 toonie The last 1 coin penny to be minted in Canada was struck on May 4 2012 14 and distribution of the penny ceased on February 4 2013 15 Ever since the price for a cash transaction is rounded to the nearest five cents The penny continues to be legal tender although they are only accepted as payment and not given back as change The standard set of designs has Canadian symbols usually wildlife on the reverse and an effigy of Elizabeth II on the obverse Some pennies nickels and dimes remain in circulation that bear the effigy of George VI It is also common for American coins to be found among circulation due to the close proximity to the United States and the fact that the sizes of the coins are similar Commemorative coins with differing reverses are also issued on an irregular basis most often quarters 50 coins are rarely found in circulation they are often collected and not regularly used in day to day transactions in most provinces Coin history edit This section needs additional citations for verification Please help improve this article by adding citations to reliable sources in this section Unsourced material may be challenged and removed January 2017 Learn how and when to remove this template message nbsp Engraving of a Canadian fifty cent coin issued in 1871In 1858 bronze 1 and 0 925 silver 5 10 and 20 coins were issued by the Province of Canada Except for 1 coins struck in 1859 no more coins were issued until 1870 when production of the 5 and 10 was resumed and silver 25 and 50 were introduced Between 1908 and 1919 sovereigns legal tender in Canada for 4 86 2 3 were struck in Ottawa with a C mintmark Canada produced its first gold dollar coins in 1912 in the form of 5 and 10 These coins were produced from 1912 to 1914 The obverse carries an image of King George V and on the reverse is a shield with the arms of the Dominion of Canada Gold from the Klondike River valley in the Yukon accounts for much of the gold in the coins Two years into the coin s production World War I began and production of the coins stopped in favour of tighter control over Canadian gold reserves Most of the 1914 coins produced never reached circulation at the time and some were stored for more than 75 years until being sold off in 2012 The high quality specimens were sold to the public and the visually unappealing ones were melted 16 In 1920 the size of the 1 was reduced and the silver fineness of the 5 10 25 and 50 coins was reduced to 0 800 silver 200 copper This composition was maintained for the 10 25 and 50 piece through 1966 but the debasement of the 5 piece continued in 1922 with the silver 5 being entirely replaced by a larger nickel coin In 1942 as a wartime measure nickel was replaced by tombac in the 5 coin which was changed in shape from round to dodecagonal Chromium plated steel was used for the 5 in 1944 and 1945 and between 1951 and 1954 after which nickel was readopted The 5 returned to a round shape in 1963 nbsp Five cent coin issued 1942 nbsp Five cent coin issued 1964Several Canadian coins like the five cent coin underwent changes in composition and shape in the 20th century In 1935 the 0 800 silver voyageur dollar was introduced Production was maintained through 1967 with the exception of the war years between 1939 and 1945 In 1967 both 0 800 silver 0 200 copper and later that year 0 500 silver 500 copper 10 and 25 coins were issued 1968 saw further debasement the 0 500 fine silver dimes and quarters were completely replaced by nickel ones mid year All 1968 50 and 1 coins were reduced in size and coined only in pure nickel Thus 1968 marked the last year in which any circulating silver coinage was issued in Canada In 1982 the 1 coin was changed to dodecagonal and the 5 was further debased to a cupro nickel alloy In 1987 a 1 coin struck in aureate plated nickel was introduced A bimetallic 2 coin followed in 1996 In 1997 copper plated zinc replaced bronze in the 1 and it returned to a round shape This was followed in 2000 by the introduction of even cheaper plated steel 1 5 10 25 and 50 coins with the 1 plated in copper and the others plated in cupro nickel In 2012 the multi ply plated steel technology was introduced for 1 and 2 coins as well Also in that year mintage of the 1 coin ceased and its withdrawal from circulation began in 2013 Banknotes editMain article Banknotes of the Canadian dollar nbsp An 1892 five dollar note issued by the Bank of Hamilton Early Canadian dollar notes were issued by Canadian charter banks The first paper money issued in Canada denominated in dollars were British Army bills issued between 1813 and 1815 Canadian dollar banknotes were later issued by the chartered banks starting in the 1830s by several pre Confederation colonial governments most notably the Province of Canada in 1866 and after confederation by the Canadian government starting in 1870 Some municipalities also issued notes most notably depression scrip during the 1930s 17 On July 3 1934 18 failed verification with only 10 chartered banks still issuing notes the Bank of Canada was founded This new government agency became the sole issuer of all federal notes In 1935 it issued its first series of notes in denominations of 1 2 5 10 20 25 50 100 500 and 1000 The 25 note was a commemorative issue released to mark the Silver Jubilee of King George V 19 In 1944 the chartered banks were prohibited from issuing their own currency with the Royal Bank of Canada and the Bank of Montreal among the last to issue notes nbsp The Bank of Canada headquarters The Bank of Canada is the sole issuer of federal notes Significant design changes to the notes have occurred since 1935 with new series introduced in 1937 1954 1970 1986 and 2001 In June 2011 newly designed notes printed on a polymer substrate as opposed to cotton fibre were announced the first of these polymer notes the 100 bill began circulation on November 14 2011 the 50 bill began circulation on March 26 2012 the 20 denomination began circulation on November 7 2012 and the 5 and 10 denominations began circulation on November 12 2013 Since 1935 all banknotes are printed by the Ottawa based Canadian Bank Note Company under contract to the Bank of Canada Previously a second company BA International founded in 1866 as the British American Bank Note Company shared printing duties In 2011 BA International announced it would close its banknote printing business and cease printing banknotes at the end of 2012 20 since then the Canadian Bank Note Company has been the sole printer of Canadian banknotes All banknotes from series prior to the current polymer series are now considered unfit for circulation due to their lacking of any modern security features such as a metallic stripe 21 Financial institutions must return the banknotes to the Bank of Canada which will then destroy them 21 Individuals may keep the banknotes indefinitely 22 Legal tender editAs of January 1 2021 the 1 2 25 500 and 1000 notes issued by the Bank of Canada are no longer legal tender 23 All other current and prior Canadian dollar banknotes issued by the Bank of Canada remain as legal tender in Canada However commercial transactions may legally be settled in any manner agreed by the parties involved Legal tender of Canadian coinage is governed by the Currency Act which sets out limits of 24 40 if the denomination is 2 or greater but does not exceed 10 25 if the denomination is 1 10 if the denomination is 10 or greater but less than 1 5 if the denomination is 5 25 if the denomination is 1 Retailers in Canada may refuse bank notes without breaking the law According to legal guidelines the method of payment has to be mutually agreed upon by the parties involved with the transactions For example stores may refuse 100 banknotes if they feel that would put them at risk of being counterfeit victims however official policy suggests that the retailers should evaluate the impact of that approach In the case that no mutually acceptable form of payment can be found for the tender the parties involved should seek legal advice 25 Canadian dollars especially coins are accepted by some businesses in the northernmost cities of the United States and in many Canadian snowbird enclaves just as U S dollars are accepted by some Canadian businesses 26 In 2012 Iceland considered adopting the Canadian dollar as a stable alternative to the Icelandic krona 27 28 Canada was favoured due to its northern geography and similar resource based economy in addition to its relative economic stability 29 30 The Canadian ambassador to Iceland said that Iceland could adopt the currency although Iceland ultimately decided not to move on with the proposal 31 Value edit nbsp The cost of one United States dollar in Canadian dollars from 1990 nbsp The cost of one Euro in Canadian dollars from 1999Since 76 7 of Canada s exports go to the U S and 53 3 of imports into Canada come from the U S 32 Canadians are interested in the value of their currency mainly against the U S dollar Although domestic concerns arise when the dollar trades much lower than its U S counterpart there is also concern among exporters when the dollar appreciates quickly A rise in the value of the dollar increases the price of Canadian exports to the U S On the other hand there are advantages to a rising dollar in that it is cheaper for Canadian industries to purchase foreign material and businesses The Bank of Canada currently has no specific target value for the Canadian dollar and has not intervened in foreign exchange markets since 1998 33 The Bank s official position is that market conditions should determine the worth of the Canadian dollar although it occasionally makes minor attempts to influence its value On world markets the Canadian dollar historically tended to move in tandem with the U S dollar 34 An apparently rising Canadian dollar against the U S dollar was decreasing against other international currencies however during the rise of the Canadian dollar between 2002 and 2013 it gained value against the U S dollar as well as other international currencies In recent years dramatic fluctuations in the value of the Canadian dollar have tended to correlate with shifts in oil prices reflecting the Canadian dollar s status as a petrocurrency owing to Canada s significant oil exports 35 The Canadian dollar traded at a record high of US 2 78 in terms of American greenbacks on July 11 1864 since the latter was inconvertible paper currency 36 However the Canadian dollar remained close to par or 1 1 versus the gold or silver US dollar of the time Unlike other currencies in the Bretton Woods system whose values were fixed the Canadian dollar was allowed to float from 1950 to 1962 Between 1952 and 1960 the Canadian dollar traded at a slight premium over the U S dollar reaching a high of US 1 0614 on August 20 1957 36 The Canadian dollar fell considerably after 1960 and this contributed to Prime Minister John Diefenbaker s defeat in the 1963 election The Canadian dollar returned to a fixed exchange rate regime in 1962 when its value was set at US 0 925 where it remained until 1970 36 As an inflation fighting measure the Canadian dollar was allowed to float in 1970 Its value appreciated and it was worth more than the U S dollar for part of the 1970s The high point was on April 25 1974 when it reached US 1 0443 37 The Canadian dollar fell in value against its American counterpart during the technological boom of the 1990s that was centred in the United States and was traded for as little as US 0 6179 on January 21 2002 which was an all time low 38 Since then its value against all major currencies rose until 2013 due in part to high prices for commodities especially oil that Canada exports 39 The Canadian dollar s value against the U S dollar rose sharply in 2007 because of the continued strength of the Canadian economy and the U S currency s weakness on world markets During trading on September 20 2007 it met the U S dollar at parity for the first time since November 25 1976 40 Inflation in the value of the Canadian dollar has been fairly low since the 1990s In 2007 the Canadian dollar rebounded soaring 23 in value 36 On September 28 2007 the Canadian dollar closed above the U S dollar for the first time in 30 years at US 1 0052 41 On November 7 2007 it hit US 1 1024 during trading a modern day high 42 after China announced it would diversify its US 1 43 trillion foreign exchange reserve away from the U S dollar By November 30 however the Canadian dollar was once again at par with the U S dollar and on December 4 the dollar had retreated back to US 0 98 through a cut in interest rates made by the Bank of Canada due to concerns about exports to the U S Due to its soaring value and new record highs at the time the Canadian dollar was named the Canadian Newsmaker of the Year for 2007 by the Canadian edition of Time magazine 43 Since the late 2000s the Canadian dollar has been valued at levels comparable to the years before its swift rise in 2007 For most of the 2010s the exchange rate of Canadian to US dollars was approximately US 0 70 to Can 1 00 44 Reserve currency editMost traded currencies by valueCurrency distribution of global foreign exchange market turnover 45 vte Rank Currency ISO 4217code Symbol orabbreviation Proportion of daily volume Growth rate 2019 2022 April 2019 April 20221 U S dollar USD US 88 3 88 5 nbsp 0 2 2 Euro EUR 32 3 30 5 nbsp 5 5 3 Japanese yen JPY 円 16 8 16 7 nbsp 0 6 4 Sterling GBP 12 8 12 9 nbsp 0 7 5 Renminbi CNY 元 4 3 7 0 nbsp 62 7 6 Australian dollar AUD A 6 8 6 4 nbsp 5 8 7 Canadian dollar CAD C 5 0 6 2 nbsp 24 8 Swiss franc CHF CHF 4 9 5 2 nbsp 6 1 9 Hong Kong dollar HKD HK 3 5 2 6 nbsp 25 7 10 Singapore dollar SGD S 1 8 2 4 nbsp 33 3 11 Swedish krona SEK kr 2 0 2 2 nbsp 10 12 South Korean won KRW 원 2 0 1 9 nbsp 5 13 Norwegian krone NOK kr 1 8 1 7 nbsp 5 5 14 New Zealand dollar NZD NZ 2 1 1 7 nbsp 19 15 Indian rupee INR 1 7 1 6 nbsp 5 8 16 Mexican peso MXN 1 7 1 5 nbsp 11 7 17 New Taiwan dollar TWD NT 0 9 1 1 nbsp 22 2 18 South African rand ZAR R 1 1 1 0 nbsp 9 19 Brazilian real BRL R 1 1 0 9 nbsp 18 1 20 Danish krone DKK kr 0 6 0 7 nbsp 16 6 21 Polish zloty PLN zl 0 6 0 7 nbsp 16 6 22 Thai baht THB 0 5 0 4 nbsp 20 23 Israeli new shekel ILS 0 3 0 4 nbsp 33 3 24 Indonesian rupiah IDR Rp 0 4 0 4 nbsp 0 25 Czech koruna CZK Kc 0 4 0 4 nbsp 0 26 UAE dirham AED د إ 0 2 0 4 nbsp 100 27 Turkish lira TRY 1 1 0 4 nbsp 63 6 28 Hungarian forint HUF Ft 0 4 0 3 nbsp 25 29 Chilean peso CLP CLP 0 3 0 3 nbsp 0 30 Saudi riyal SAR 0 2 0 2 nbsp 0 31 Philippine peso PHP 0 3 0 2 nbsp 33 3 32 Malaysian ringgit MYR RM 0 2 0 2 nbsp 0 33 Colombian peso COP COL 0 2 0 2 nbsp 0 34 Russian ruble RUB 1 1 0 2 nbsp 81 8 35 Romanian leu RON L 0 1 0 1 nbsp 0 36 Peruvian sol PEN S 0 1 0 1 nbsp 0 37 Bahraini dinar BHD د ب 0 0 0 0 nbsp 0 38 Bulgarian lev BGN BGN 0 0 0 0 nbsp 0 39 Argentine peso ARS ARG 0 1 0 0 nbsp 100 Other 1 8 2 3 nbsp 27 7 Total b 200 0 200 0 A number of central banks and commercial banks keep Canadian dollars as a reserve currency The Canadian dollar is considered to be a benchmark currency citation needed In the economy of the Americas the Canadian dollar plays a similar role to that of the Australian dollar AUD in the Asia Pacific region The Canadian dollar as a regional reserve currency for banking has been an important part of the British French and Dutch Caribbean states economies and finance systems since the 1950s The Canadian dollar is held by many central banks in Central and South America as well 46 citation needed By observing how the Canadian dollar behaves against the U S dollar foreign exchange economists can indirectly observe internal behaviours and patterns in the U S economy that could not be seen by direct observation The Canadian dollar has fully evolved into a global reserve currency only since the 1970s when it was floated against all other world currencies Some economists have attributed the rise of importance of the Canadian dollar to the long term effects of the Nixon Shock that effectively ended the Bretton Woods system of global finance 47 Exchange rates edit nbsp USD CAD exchange rateCurrent CAD exchange ratesFrom Google Finance AUD CHF CNY EUR GBP HKD JPY USDFrom Yahoo Finance AUD CHF CNY EUR GBP HKD JPY USDFrom XE com AUD CHF CNY EUR GBP HKD JPY USDFrom OANDA AUD CHF CNY EUR GBP HKD JPY USDSee also editEconomy of Canada List of countries by leading trade partners List of the largest trading partners of CanadaNotes edit There are various common abbreviations to distinguish the Canadian dollar from others while the ISO 4217 currency code CAD a three character code without monetary symbols is common no single system is universally accepted The World Bank Editing Canadian English and The Canadian Style guide all indicate Can C is the symbol for the Nicaraguan cordoba and as such is discouraged by The Canadian Style guide Editing Canadian English also indicates CDN both style guides note the ISO code The total sum is 200 because each currency trade is counted twice once for the currency being bought and once for the one being sold The percentages above represent the proportion of all trades involving a given currency regardless of which side of the transaction it is on For example the US dollar is bought or sold in 88 of all currency trades while the euro is bought or sold in 31 of all trades References editCitations edit Canadian dollar Symbol Linguistic recommendation from the Translation Bureau Translation Bureau October 15 2015 Archived from the original on February 19 2020 Retrieved October 2 2021 In an English document when you need to specify the type of dollar Canadian American Australian etc the Translation Bureau recommends using the symbol Can to represent the Canadian dollar The shorter variant C is another symbol frequently used for the Canadian dollar However the Translation Bureau does not recommend this symbol since it has a slight risk of ambiguity it is also used to represent the Nicaraguan cordoba oro and occasionally the Cayman Islands dollar as well World Bank Editorial Style Guide 2020 page 135 PDF openknowledge worldbank org Retrieved August 27 2022 Report on Business Great time for European vacation as loonie hits record high against euro The Globe and Mail July 12 2012 Archived from the original on May 5 2018 Retrieved November 9 2014 Currency Composition of Official Foreign Exchange Reserves COFER International Monetary Fund 2022 Retrieved April 21 2023 Canada s resilience has foreign central banks loading up on loonies The Globe and Mail May 13 2014 Archived from the original on March 5 2016 Retrieved November 9 2014 What s lifting the high flying loonie The Globe and Mail September 19 2012 Archived from the original on March 4 2016 Retrieved November 9 2014 Seven reasons to invest in Canada now The Globe and Mail March 11 2013 Archived from the original on January 21 2017 Retrieved November 9 2014 China likely sitting on billions of Canadian dollars The Globe and Mail October 2 2015 Archived from the original on June 15 2018 Retrieved January 13 2016 Why a world in turmoil is still parking its cash in Canada lots of cash The National Post December 31 2015 Archived from the original on May 12 2018 Retrieved January 13 2016 1871 Uniform Currency Act Canadian Economy Online Government of Canada Archived from the original on February 21 2008 Retrieved February 18 2008 Heritage Canadian December 14 2017 Official symbols of Canada Canada ca www canada ca Archived from the original on December 24 2019 Retrieved April 25 2018 Guilloton Noelle Cajolet Laganiere Helene 2005 Le francais au bureau Les publications du Quebec p 467 ISBN 2 551 19684 1 Farid Frederic September 26 2008 Pourquoi trente sous 25 cents Archived from the original on October 23 2017 Retrieved October 6 2010 Canada s Last Penny minted CBC May 4 2012 Archived from the original on September 4 2012 Retrieved May 28 2012 Canadian Penny Discontinued Feb 4 Marks The Official End Of Canada s Copper Coloured Coin Huffington Post Canada February 1 2013 Archived from the original on July 20 2013 Retrieved June 28 2013 A National Treasure Resurfaces as the Royal Canadian Mint Offers Rare Opportunity to Own Canada s First Gold Coins Crafted With Pride From 1912 1914 www mint ca Archived from the original on December 22 2015 Retrieved December 15 2015 Khakase Sandeip 2017 Demonetisation Monumental Blunder or Masterstroke People s Literature ISBN 978 81 932525 5 0 Linzmayer Owen Canada The Banknote Book San Francisco CA CDN Publishing Archived from the original on August 29 2012 Retrieved December 19 2023 1935 The First Series www bankofcanadamuseum ca Retrieved May 26 2022 G amp D to Shutter Banknote Printing in Ottawa PrintAction December 2 2011 Archived from the original on December 20 2013 Retrieved January 28 2013 a b Unfit Bank Notes PDF bankofcanada ca Bank of Canada October 2012 Archived PDF from the original on January 27 2020 Retrieved January 15 2020 CBC News 2000 About legal tender www bankofcanada ca Archived from the original on August 13 2021 Retrieved August 19 2021 BILL C 41 As passed by the House of Commons Parliament of Canada Archived from the original on May 25 2011 Retrieved December 31 2008 Currency Counterfeiting FAQ Royal Canadian Mounted Police Archived from the original on February 15 2008 Retrieved February 17 2008 6 US Destinations That Will Accept Canadian Money Without Converting It NARCITY March 14 2016 Archived from the original on February 12 2019 Retrieved February 11 2019 Mckenna Barrie March 2 2012 Canadian envoy to Iceland sparks loonie controversy The Globe and Mail Archived from the original on March 4 2012 Retrieved March 4 2012 Hopper Tristin May 15 2012 If Iceland adopts the loonie Greenland could soon follow economist The National Post Retrieved May 15 2012 McKenna Barrie March 2 2012 Canadian envoy to Iceland sparks loonie controversy The Globe and Mail Archived from the original on March 2 2012 Retrieved March 3 2012 Canada ready to discuss letting Iceland use its dollar icenews is Archived from the original on March 4 2012 Retrieved March 8 2012 Babad Michael September 24 2012 Canadian dollar a poor choice for Iceland central bank says The Globe and Mail Archived from the original on January 5 2013 Retrieved November 24 2012 Central Intelligence Agency The World Factbook Canada Archived from the original on September 22 2021 Retrieved June 16 2016 Understanding exchange rates www bankofcanada ca Archived from the original on August 30 2020 Retrieved October 8 2020 XE Currency Charts USD to CAD XE com Archived from the original on December 5 2017 Retrieved February 11 2019 On the Canadian dollar and the oil prices March 12 2013 Archived from the original on February 22 2014 Retrieved March 16 2013 a b c d Canadian Dollar History ExchangeRate com Archived from the original on February 28 2020 Retrieved May 4 2020 Powell James 2005 A History of the Canadian Dollar Bank of Canada ISBN 0 660 19571 2 oanda com Historical exchange rate of CAD to USD from December 21 2001 to February 21 2002 Archived from the original on July 11 2007 Retrieved March 14 2007 How amp Why Oil Impacts The Canadian Dollar Investopedia October 16 2018 Archived from the original on February 12 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reserve currency IMF data shows ca news yahoo com October 2 2014 Archived from the original on May 9 2021 Retrieved October 8 2020 A Look At The History Of The Canadian Dollar KnightsBridgeFX Archived from the original on February 12 2019 Retrieved February 11 2019 Sources edit Krause Chester L Clifford Mishler 1991 Standard Catalog of World Coins 1801 1991 18th ed Krause Publications ISBN 0873411501 Pick Albert 1994 Standard Catalog of World Paper Money General Issues Colin R Bruce II and Neil Shafer editors 7th ed Krause Publications ISBN 0 87341 207 9 Pick Albert 1990 Standard Catalog of World Paper Money Specialized Issues Colin R Bruce II and Neil Shafer editors 6th ed Krause Publications ISBN 0 87341 149 8 Bank of Canada kills 1000 bill CBC News September 26 2000 Retrieved March 2 2014 External links edit nbsp Wikimedia Commons has media related to Money of Canada New Canadian 100 Bank Note 2011 on YouTube Royal Canadian Mint Canadian Paper Money historical banknotes in English and German re politics The Canadian Dollar Bank of Canada Exchange rate lookup Bank of Canada Bank notes Portals nbsp Canada nbsp North America nbsp Money nbsp Numismatics Retrieved from https en wikipedia org w index php title Canadian dollar amp oldid 1196420520, wikipedia, wiki, book, books, library,

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