Canadian dollar – Wikipedia

currency of Canada
C $, see “ C $ ” redirects here. For the currency with the symbol, see nicaraguan córdoba. For early uses, see C $ ( disambiguation )

The Canadian dollar ( symbol : $ ; code : CAD ; french : dollar canadien ) is the currency of Canada. It is abbreviated with the dollar sign $, or sometimes CA$, Can$ [ 1 ] or C$ to distinguish it from other dollar -denominated currencies. [ note 1 ] It is divided into 100 cents ( ¢ ). Owing to the picture of a coarse loon on its back, the dollar coin, and sometimes the unit of currency itself, are sometimes referred to as the loonie by English-speaking Canadians and foreign exchange traders and analysts. [ 2 ] account for approximately 2 % of all ball-shaped reserves, the canadian dollar is the fifth-most retain military reserve currency in the worldly concern, behind the U.S. dollar, the euro, the ache and the lebanese pound greatest. [ 3 ] The canadian dollar is democratic with central banks because of Canada ‘s relative economic wisdom, the canadian politics ‘s firm autonomous place, and the stability of the country ‘s legal and political systems. [ 4 ] [ 5 ] [ 6 ] [ 7 ] [ 8 ]

history [edit ]

The 1850s in Canada were a decade of debate over whether to adopt a greatest monetary system or a decimal fraction monetary system based on the US dollar. The british North American provinces, for reasons of practicality in relative to the increasing trade with the neighbor United States, had a hope to assimilate their currencies with the american english unit, but the imperial authorities in London hush preferred sterling as the sole currency throughout the british Empire. The british North American provinces however gradually adopted currencies tied to the american dollar .

province of Canada [edit ]

In 1841, the Province of Canada adopted a new system based on the Halifax evaluation. The new canadian pound was equal to four US dollars ( 92.88 grains aureate ), making one lumber sterling adequate to 1 beat, 4 shillings, and 4 penny Canadian. Thus, the new canadian lumber was worth 16 shillings and 5.3 penny greatest. In 1851, the Parliament of the Province of Canada passed an act for the purposes of introducing a pound sterling unit in concurrence with decimal fractional neologism. The theme was that the decimal fraction coins would correspond to exact amounts in sexual intercourse to the U.S. dollar fractional coinage. In answer 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 aureate autonomous and the American gold eagle coins. This gold standard was introduced with the gold autonomous being legal tender at £1 = US $ 4.86+2⁄3. No coinage was provided for under the 1853 act. greatest neologism was made legal tender and all other ash grey coins were demonetized. The british government in principle allowed for a decimal fraction coinage but however held out the hope that a greatest whole would be chosen under the identify of “ royal ”. however, in 1857, the decision was made to introduce a decimal neologism into the Province of Canada in junction with the U.S. dollar unit. Hence, when the new decimal fraction coins were introduced in 1858, the colony ‘s currentness became aligned with the U.S. currentness, although the british gold sovereign continued to remain legal tender at the rate of £1 = 4.86+2⁄3 right up until the 1990s. In 1859, canadian colonial postage stamps were issued with decimal denominations for the beginning time. In 1861, canadian postage stamps were issued with the denominations shown in dollars and cents .

New Brunswick and Nova Scotia [edit ]

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

newfoundland [edit ]

Newfoundland went decimal fraction in 1865, but unlike the Province of Canada, New Brunswick, and Nova Scotia, it decided to adopt a whole based on the spanish dollar rather than on the U.S. dollar, and there was a flimsy dispute between these two units. The U.S. dollar was created in 1792 on the basis of the average weight of a excerpt of wear spanish dollars. As such, the spanish dollar was worth slightly more than the U.S. dollar, and alike, 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 state in 1871, the canadian dollar replaced the british Columbia dollar .

Prince Edward Island [edit ]

In 1871, Prince Edward Island went decimal fraction within the U.S. dollar unit and introduce coins in the denomination of 1 penny. however, the currentness of Prince Edward Island was absorbed into the canadian system shortly afterwards, when Prince Edward Island joined the Dominion of Canada in 1873 .

confederation [edit ]

In 1867, the provinces of Canada, New Brunswick, and Nova Scotia united in a confederation named Canada and the three currencies were merged into the canadian dollar. The canadian Parliament passed the Uniform Currency Act in April 1871, [ 9 ] tying up loose ends as to the currencies of the assorted provinces and replacing them with a coarse canadian dollar .

evolution in the twentieth century [edit ]

The gold standard was temporarily abandoned during the First World War and definitively abolished on April 10, 1933. At the outbreak of the Second World War, the exchange rate to the U.S. dollar was fixed at CA $ 1.10 = US $ 1.00. This was changed to parity bit in 1946. In 1949, the pound greatest was devalued and Canada followed, returning to a peg of CA $ 1.10 = US $ 1.00. however, Canada allowed its dollar to float in 1950, whereupon the currentness rose to a flimsy premium over the U.S. dollar for the next ten. But the canadian dollar fell precipitously after 1960 before it was again pegged in 1962 at CA $ 1.00 = US $ 0.925. This was sometimes pejoratively refer to as the “ Diefenbuck ” or the “ Diefendollar ”, after the then Prime Minister, John Diefenbaker. This peg lasted until 1970, with the currency ‘s respect being floated since then .

terminology [edit ]

canadian English, exchangeable to american English, used the slang condition “ buck “ for a early paper dollar. The canadian origin of this term derives from a coin struck by the Hudson ‘s Bay Company during the seventeenth century with a value equal to the pepper of a male beaver – a “ buck ”. [ 10 ] Because of the appearance of the park loon on the back of the $ 1 coin that replaced the dollar bill in 1987, the news loonie was adopted in canadian parlance to distinguish the canadian dollar mint from the dollar bill. When the two-dollar coin was introduced in 1996, the derivative password toonie ( “ two loonies ” ) became the common news for it in canadian English slang. In French, the currency is besides called le dollar ; canadian french slang terms include piastre or piasse ( the original son 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/ ) [ 11 ] is by and large used for the subdivision ; sou is another, informal, term for 1¢. 25¢ coins in Quebec French are frequently called trente sous ( “ thirty cents ” ) because of a series of changes in terminology, currencies, and exchange rates. After the british seduction of Canada in 1760, french coins gradually went out of practice, and sou became a nickname for the halfpenny, which was similar in value to the french sou. spanish dollars and U.S. dollars were besides in habit, and from 1841 to 1858, the central rate was fixed at $ 4 = £1 ( or 400¢ = 240d ). This made 25¢ equal to 15d, or 30 halfpenny ( 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¢ digest. [ 12 ]

Coins [edit ]

loonie and toonie The one- and two-dollar coins, nicknamed theand Coins are produced by the Royal Canadian Mint ‘s facilities in Winnipeg, Manitoba, and Ottawa, Ontario, in denominations of 5¢ ( nickel ), 10¢ ( dime bag ), 25¢ ( quarter ), 50¢ ( 50¢ piece ) ( though the 50¢ objet d’art is nobelium long distributed to banks and is alone available directly from the mint, therefore seeing very little circulation ), $ 1 ( canadian dollar ), and $ 2 ( toonie ). The last 1¢ mint ( penny ) to be minted in Canada was struck on May 4, 2012, [ 13 ] and distribution of the penny ceased on February 4, 2013. [ 14 ] 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 entirely accepted as requital and not given back as change. The standard place of design has canadian symbols, normally wildlife, on the revoke, 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 besides common for american coins to be found among circulation due to the airless proximity to the United States and the fact that the sizes of the coins are alike. commemorative coins with differ reverses are besides issued on an irregular basis, most frequently quarters. 50¢ coins are rarely found in circulation ; they are frequently collected and not regularly used in daily transactions in most provinces .

Coin history [edit ]

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 product 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 .
g and is 90% gold giving it 7.524g of gold. It has a diameter of 21.59mm and a thickness of 1.82mm at the rim. $ 5 gold canadian coin from 1914. Reverse side shown depicting a shield with the arms of the Dominion of Canada. The coin weighs 8.36g and is 90 % gold giving it 7.524g of aureate. It has a diameter of 21.59mm and a thickness of 1.82mm at the rim. Canada produced its first amber dollar coins in 1912 in the form of $ 5 and $ 10. These coins were produced from 1912 to 1914. The obverse carries an visualize of King George V and on the turn back 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 favor of tighter control over Canadian aureate 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 unsympathetic ones were melted. [ 15 ] In 1920, the size of the 1¢ was reduced and the flatware fineness of the 5¢, 10¢, 25¢ and 50¢ coins was reduced to 0.800 silver/.200 copper. This musical composition was maintained for the 10¢, 25¢ and 50¢ piece through 1966, but the degradation of the 5¢ while continued in 1922 with the flatware 5¢ being wholly replaced by a larger nickel mint. In 1942, as a wartime measuring stick, nickel was replaced by tombac in the 5¢ coin, which was changed in human body from round to dodecagonal. chrome 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 condition in 1963. 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, late that year, 0.500 silver/.500 copper 10¢ and 25¢ coins were issued. 1968 saw further degradation : the 0.500 fine silver medal dimes and quarters were completely replaced by nickel ones mid-year. All 1968 50¢ and $ 1 coins were reduced in size and coined lone in arrant nickel. frankincense, 1968 marked the final class in which any circulate silver neologism was issued in Canada. In 1982, the 1¢ mint was changed to dodecagonal, and the 5¢ was far debased to a cupro-nickel admixture. In 1987 a $ 1 coin struck in aureate-plated nickel was introduced. A bimetal $ 2 coin followed in 1996. In 1997, copper-plated zinc replaced bronze in the 1¢, and it returned to a circle supreme headquarters allied powers europe. 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 engineering was introduced for $ 1 and $ 2 coins deoxyadenosine monophosphate well. besides in that year mintage of the 1¢ mint ceased and its withdrawal from circulation began in 2013 .

Banknotes [edit ]

$ 1 Dominion of Canada note issued in 1898 The first composition money issued in Canada denominated in dollars were british Army bills, issued between 1813 and 1815. canadian dollar banknotes were late 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 besides issued notes, most notably depression scrip during the 1930s. [ citation needed ] On July 3, 1934, [ 16 ] [ failed verification ] with lone 10 chartered banks still issuing notes, the Bank of Canada was founded. This new politics 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. [ 17 ] In 1944, the charter 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. Significant plan changes to the notes have occurred since 1935, with newfangled 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 foremost of these polymer notes, the $ 100 bill, began circulation on November 14, 2011, the $ 50 charge began circulation on March 26, 2012, the $ 20 appellation 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 abridge to the Bank of Canada. Previously, a moment company, BA International ( founded in 1866 as the british American Bank Note Company ), shared print duties. In 2011, BA International announced it would close its bill printing business and discontinue print banknotes at the end of 2012 ; [ 18 ] 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 miss of any modern security system features, such as a metallic stripe. [ 19 ] Financial institutions must return the banknotes to the Bank of Canada, which will then destroy them. [ 19 ] Individuals may keep the banknotes indefinitely .

Legal tender [edit ]

As of January 1, 2021, the $ 1, $ 2, $ 25, $ 500 and $ 1000 notes issued by the Bank of Canada are nobelium longer legal tender. [ 21 ] All other current and anterior 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 neologism is governed by the Currency Act, which sets out limits of : [ 22 ]

  • $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 jurisprudence. 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 impingement 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. [ 23 ] canadian dollars, specially coins, are accepted by some businesses in the northernmost cities of the United States and in many canadian snow bunting enclaves, merely as U.S. dollars are accepted by some canadian businesses. [ 24 ] In 2012, Iceland considered adopting the canadian dollar as a stable alternative to the Icelandic króna. [ 25 ] [ 26 ] Canada was favoured due to its northern geography and exchangeable resource-based economy, in accession to its relative economic stability. [ 27 ] [ 28 ] The Canadian ambassador to Iceland said that Iceland could adopt the currentness ; although Iceland ultimately decided not to move on with the proposal. [ 29 ]

value [edit ]

The price 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., [ 30 ] Canadians are interest in the value of their currency chiefly against the U.S. dollar. Although domestic concerns arise when the dollar trades much lower than its U.S. counterpart, there is besides 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 early 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 presently has no specific target value for the canadian dollar and has not intervened in foreign substitute markets since 1998. [ 31 ] The Bank ‘s official position is that market conditions should determine the deserving of the canadian dollar, although it occasionally makes minor attempts to influence its prize. On world markets, the canadian dollar historically tended to move in bicycle-built-for-two with the U.S. dollar. [ 32 ] An obviously 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 measure against the U.S. dollar a well as other international currencies. In late 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 meaning vegetable oil exports. [ 33 ] 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 newspaper currency. [ 34 ] however, the canadian dollar remained close up to equality or 1:1 versus the aureate or silver US dollar of the time. Unlike early currencies in the Bretton Woods arrangement, 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 flimsy premium over the U.S. dollar, reaching a gamey of US $ 1.0614 on August 20, 1957. [ 34 ] The canadian dollar fell well after 1960, and this contributed to Prime Minister John Diefenbaker ‘s get the better of in the 1963 election. The canadian dollar returned to a fix exchange rate regimen in 1962 when its value was set at US $ 0.925, where it remained until 1970. [ 34 ] As an inflation -fighting quantify, the canadian dollar was allowed to float in 1970. Its respect 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. [ 35 ] The canadian dollar fell in respect against its american counterpart during the technological boom of the 1990s that was centred in the United States, and was traded for deoxyadenosine monophosphate little as US $ 0.6179 on January 21, 2002, which was an all-time low. [ 36 ] Since then, its value against all major currencies rose until 2013, due in part to high prices for commodities ( particularly oil ) that Canada exports. [ 37 ] The canadian dollar ‘s value against the U.S. dollar rose aggressively in 2007 because of the cover force of the canadian economy and the U.S. currency ‘s weakness on global markets. During deal on September 20, 2007, it met the U.S. dollar at parity bit for the first time since November 25, 1976. [ 38 ] 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. [ 34 ] On September 28, 2007, the Canadian dollar closed above the U.S. dollar for the first gear time in 30 years, at US $ 1.0052. [ 39 ] On November 7, 2007, it hit US $ 1.1024 during trade, a contemporary high [ 40 ] after China announced it would diversify its US $ 1.43 trillion extraneous 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 trimmed in matter to rates made by the Bank of Canada due to concerns about exports to the U.S. due to its soaring measure and new record highs at the time, the canadian dollar was named the Canadian Newsmaker of the year for 2007 by the canadian version of Time magazine. [ 41 ] Since the late 2000s, the canadian dollar has been valued at levels comparable to the years before its western fence lizard rise in 2007. For most of the 2010s, the exchange pace of CAD to USD was approximately $ 0.70 to $ 1.00. [ 42 ]

Reserve currency [edit ]

A total 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 character to that of the australian dollar ( AUD ) in the Asia-Pacific region. The canadian dollar ( as a regional reserve currency for bank ) has been an significant part of the british, french and dutch Caribbean states ‘ economies and finance systems since the 1950s. The canadian dollar is held by many cardinal banks in Central and South America arsenic well. [ 44 ] [ citation needed ] By observing how the canadian dollar behaves against the U.S. dollar, foreign rally economists can indirectly observe internal behaviours and patterns in the U.S. economy that could not be seen by mastermind notice. The canadian dollar has fully evolved into a ball-shaped reserve currency only since the 1970s, when it was floated against all other populace currencies. Some economists have attributed the rise of importance of the canadian dollar to the long-run effects of the Nixon Shock that efficaciously ended the Bretton Woods system of global finance. [ 45 ]

Exchange rates [edit ]

See besides [edit ]

explanatory notes [edit ]

  1. ^ C $” is commonly used (although discouraged by The Canadian Style guide) and is used by the Editing Canadian English and The Canadian Style guide indicate “Can$”, with Editing Canadian English also indicating “CDN$”; both style guides note the ISO scheme/code. The abbreviation “CA$” is also used such as in some software packages. There are assorted common abbreviations to distinguish the canadian dollar from others : while the ISO 4217 currentness code “ CAD ” ( a three-character code without monetary symbols ) is common, no individual system is universally accepted. “ ” is normally used ( although discouraged byguide ) and is used by the International Monetary Fund, whileandguide indicate “ toilet $ ”, withalso indicating “ CDN $ ” ; both style guides note the ISO scheme/code. The abbreviation “ CA $ ” is besides used such as in some software packages .
  2. ^ US $) and another bought (€). Therefore each trade is counted twice, once under the sold currency ($) and once under the bought currency (€). The percentages above are the percent of trades involving that currency regardless of whether it is bought or sold, e.g. the U.S. Dollar is bought or sold in 88% of all trades, whereas the Euro is bought or sold 32% of the time. The total sum is 200 % because each currency trade wind always involves a currency pair ; one currentness is sold ( e.g. ) and another buy ( € ). consequently each barter is counted doubly, once under the deal currentness ( $ ) and once under the buy currency ( € ). The percentages above are the percentage of trades involving that currency regardless of whether it is bought or sold, e.g. the U.S. Dollar is bought or sold in 88 % of all trades, whereas the Euro is bought or sold 32 % of the time .

References [edit ]

Citations [edit ]

Sources [edit ]

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