Canadian dollar

The Canadian dollar (symbol: $; code: CAD; French: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $, or sometimes Can$[1] or C$ to distinguish it from other dollar-denominated currencies.[2] It is divided into 100 cents (¢).

Owing to the image of a loon on the one-dollar coin, the currency is sometimes referred to as the loonie by foreign exchange traders and analysts,[3] as it is by Canadians in general, or huard in French.

Accounting for approximately 2% of all global reserves, the Canadian dollar is the fifth most held reserve currency in the world, behind the U.S. dollar, the euro, the yen and the pound sterling.[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]

Canadian dollar
Canadian dollar (English)
dollar canadien (French)
Canadian Frontier Banknotes faces
2011 Frontier Series (polymer notes)
ISO 4217
CodeCAD
Number124
Exponent2
Denominations
Subunit
 ​1100cent
(in English) and sou (colloquial) (in French)
Symbol$ or Can$ or C$ or CAD
cent¢
NicknameLoonie, buck (in English)
Huard, piastre (pronounced piasse in popular usage) (in French)
Banknotes$5, $10, $20, $50, $100
Coins
 Freq. used, 10¢, 25¢, $1, $2
 Rarely used, 50¢
Demographics
Official user(s) Canada
Unofficial user(s) Saint Pierre and Miquelon
Issuance
Central bankBank of Canada
 Websitewww.bankofcanada.ca
PrinterCanadian Bank Note Company
MintRoyal Canadian Mint
 Websitewww.mint.ca
Valuation
Inflation1.9% (July 2018)
 SourceStatistics Canada, 2018.

History: From the Canadian pound to the Canadian dollar

The 1850s were a decade of wrangling over whether to adopt a sterling 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 British pounds 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

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 one pound sterling equal to 1 pound, 4 shillings, and 4 pence 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 pound sterling 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.

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 = ​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.

New Brunswick and Nova Scotia

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.

Newfoundland

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

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 Confederation in 1871, the Canadian dollar replaced the British Columbia dollar.

Prince Edward Island

In 1871, Prince Edward Island went decimal within the U.S. dollar unit and introduced coins for 1¢. 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.

Confederation

In 1867, the provinces of Canada, New Brunswick, and Nova Scotia united in a federation named Canada and the three currencies were merged into the 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.

Evolution in the 20th century

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 C$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 C$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 C$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, after which the currency's value has floated.

Terminology

Canadian English, like 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 halfpence coins, the nickname sou began to be used for the 1¢ coin, but the idiom trente sous for 25¢ endured.[13]

Coins

Canadian 1 and 2 dollar coins
The one- and two-dollar coins, nicknamed the loonie and toonie.

Coins are produced by the Royal Canadian Mint 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¢ (penny) to be minted in Canada was struck on Friday May 4, 2012,[14] and ceased its distribution on February 4, 2013.[15] Ever since, the price for a cash transaction may be 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

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.

1914 Canadian $5 gold reverse
$5 gold Canadian coin from 1914. Reverse side shown depicting a shield with the arms of the Dominion of Canada. The coin weighs 8.36 grams and is 90% gold giving it 7.524 grams of gold. It has a diameter of 21.59 mm and a thickness of 1.82 mm at the rim.

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.

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

Dominion of Canada one Dollar banknote of 1898
$1 Dominion of Canada note issued in 1898.

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 Dominion of Canada starting in 1870. Some municipalities also issued notes, most notably depression scrip during the 1930s.

On July 3, 1934,[17] with only 10 chartered banks still issuing notes, the Bank of Canada was founded. It took over the federal issuance of notes from the Dominion of Canada. It began issuing notes in denominations of $1, $2, $5, $10, $20, $25, $50, $100, $500 and $1000. 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.

CAN-S559-Bank of Montreal-10 Dollars (1935)
Bank of Montreal, 10 dollars (1935)
First note printed for the series.

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.

All banknotes are currently printed by the Ottawa-based Canadian Bank Note Company under contract to the Bank of Canada. Previously, a second company, BA International (founded 1866 as British American Bank Note Company), shared printing duties. In 2011, BA International announced it would shutter its banknote printing business and cease printing banknotes at the end of 2012.[18]

Legal tender

Canadian dollar banknotes issued by the Bank of Canada are 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:[19]

  • $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.[20]

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. [21]

In 2012, Iceland considered adopting the Canadian dollar as a stable alternative to the Icelandic króna.[22][23] Canada was favoured due to its northern geography and similar resource based economy, in addition to its relative economic stability.[24][25] The Canadian ambassador to Iceland said that Iceland could adopt the currency; although Iceland ultimately decided not to move on with the proposal.[26]

Value

CAD-USD v2
The cost of one United States dollar in Canadian dollars from 1990.
CAD-EUR 1999-
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.,[27] 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.[28] The Bank's official position is that market conditions should determine the worth of the Canadian dollar, although the BoC 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. [29] An apparently rising Canadian dollar (against the U.S. dollar) was decreasing against other international currencies; however, during the rise of the Canadian dollar since 2002, it has 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.[30]

The Canadian dollar's highest ever exchange rate was US$2.78, reached on July 11, 1864 after the United States had temporarily abandoned the gold standard.

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.

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.

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.

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 US on January 21, 2002, which was an all-time low.[31] Since then, its value against all major currencies rose until 2013, due in part to high prices for commodities (especially oil) that Canada exports. [32]

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.[33]

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.

On September 28, 2007, the Canadian dollar closed above the U.S. dollar for the first time in 30 years, at US$1.0052.[34] On November 7, 2007, it hit US$1.1024 during trading, a modern-day high[35] 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.[36]

Since the late 2000s, the Canadian dollar has been valued at levels comparable to the years before the swift rise in 2007. A dollar in the mid 70 cent US range has been the usual rate for much of the 2010s.

Reserve currency

Most traded currencies by value
Currency distribution of global foreign exchange market turnover[37]
Rank Currency ISO 4217 code
(symbol)
% of daily trades
(bought or sold)
(April 2016)
1
United States dollar
USD (US$)
87.6%
2
Euro
EUR (€)
31.4%
3
Japanese yen
JPY (¥)
21.6%
4
Pound sterling
GBP (£)
12.8%
5
Australian dollar
AUD (A$)
6.9%
6
 Canadian dollar
CAD (C$)
5.1%
7
Swiss franc
CHF (Fr)
4.8%
8
Renminbi
CNY (元)
4.0%
9
Swedish krona
SEK (kr)
2.2%
10
New Zealand dollar
NZD (NZ$)
2.1%
11
Mexican peso
MXN ($)
1.9%
12
Singapore dollar
SGD (S$)
1.8%
13
Hong Kong dollar
HKD (HK$)
1.7%
14
Norwegian krone
NOK (kr)
1.7%
15
South Korean won
KRW (₩)
1.7%
16
Turkish lira
TRY (₺)
1.4%
17
Russian ruble
RUB (₽)
1.1%
18
Indian rupee
INR (₹)
1.1%
19
Brazilian real
BRL (R$)
1.0%
20
South African rand
ZAR (R)
1.0%
Other 7.1%
Total[38] 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.[39]

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.

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.[40]

Current exchange rates

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

See also

References

  1. ^ Recommended by the government of Canada, see http://www.btb.termiumplus.gc.ca/tpv2guides/guides/wrtps/index-eng.html?lang=eng&lettr=indx_catlog_c&page=9Rl-N63dyxbA.html#zz9Rl-N63dyxbA
  2. ^ 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. "C$" is commonly used (although discouraged by The Canadian Style guide) and is used by the International Monetary Fund, while Editing Canadian English and The Canadian Style guide indicate "Can$", 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.
  3. ^ "Report on Business: Great time for European vacation as loonie hits record high against euro". The Globe and Mail. July 12, 2012. Retrieved Nov 9, 2014.
  4. ^ "Currency Composition of Official Foreign Exchange Reserves (COFER)". www.imf.org. International Monetary Fund. June 30, 2015. Retrieved August 15, 2015.
  5. ^ "Canada's resilience has foreign central banks loading up on loonies". The Globe and Mail. May 13, 2014. Retrieved Nov 9, 2014.
  6. ^ "What's lifting the high-flying loonie?". The Globe and Mail. September 19, 2012. Retrieved Nov 9, 2014.
  7. ^ "Seven reasons to invest in Canada now". The Globe and Mail. March 11, 2013. Retrieved Nov 9, 2014.
  8. ^ "China likely sitting on billions of Canadian dollars". The Globe and Mail. Oct 2, 2015. Retrieved Jan 13, 2016.
  9. ^ "Why a world in turmoil is still parking its cash in Canada — lots of cash". The National Post. Dec 31, 2015. Retrieved Jan 13, 2016.
  10. ^ "1871 – Uniform Currency Act". Canadian Economy Online, Government of Canada. Archived from the original on February 21, 2008. Retrieved February 18, 2008.
  11. ^ Heritage, Canadian. "Official symbols of Canada - Canada.ca". www.canada.ca.
  12. ^ Guilloton, Noëlle; Cajolet-Laganière, Hélène (2005). Le français au bureau. Les publications du Québec. p. 467. ISBN 2-551-19684-1.
  13. ^ Frédéric Farid (September 26, 2008). "Pourquoi trente sous = 25 cents ?". Retrieved October 6, 2010.
  14. ^ "Canada's Last Penny minted". CBC. May 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. Retrieved Jun 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.
  17. ^ Linzmayer, Owen (2013). "Canada". The Banknote Book. San Francisco, CA: www.BanknoteNews.com.
  18. ^ "G&D to Shutter Banknote Printing in Ottawa". PrintAction. December 2, 2011. Retrieved January 28, 2013.
  19. ^ "BILL C-41 – As passed by the House of Commons". Parliament of Canada. Retrieved December 31, 2008.
  20. ^ "Currency Counterfeiting – FAQ". Royal Canadian Mounted Police. Archived from the original on February 15, 2008. Retrieved February 17, 2008.
  21. ^ "6 US Destinations That Will Accept Canadian Money Without Converting It". NARCITY. Mar 14, 2016. Retrieved Feb 11, 2019.
  22. ^ 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.
  23. ^ Hopper, Tristin (May 15, 2012). "If Iceland adopts the loonie, Greenland could soon follow: economist". The National Post. Retrieved May 15, 2012.
  24. ^ 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.
  25. ^ "Canada ready to discuss letting Iceland use its dollar". icenews.is. Retrieved March 8, 2012.
  26. ^ Babad, Michael (September 24, 2012). "Canadian dollar a 'poor choice' for Iceland, central bank says". The Globe and Mail. Retrieved November 24, 2012.
  27. ^ Central Intelligence Agency. "The World Factbook – Canada". Retrieved June 16, 2016.
  28. ^ "Bank of Canada policy on dollar valuation and intervention in FOREX markets" (PDF). Bankofcanada.ca. March 2011. Retrieved October 10, 2012.
  29. ^ "XE Currency Charts: USD to CAD". XE.com. Retrieved Feb 11, 2019.
  30. ^ "On the Canadian dollar and the oil prices". March 12, 2013. Archived from the original on February 22, 2014. Retrieved March 16, 2013.
  31. ^ 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.
  32. ^ "How & Why Oil Impacts The Canadian Dollar". Investopedia. Oct 16, 2018. Retrieved Feb 11, 2019.
  33. ^ "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.
  34. ^ "Loonie closes above parity with greenback". ctv.ca. Archived from the original (.html) on October 12, 2007. Retrieved September 28, 2007.
  35. ^ Tavia Grant (November 7, 2007). "China sends loonie flying above $1.10" (.html). The Globe and Mail. Retrieved November 7, 2007.
  36. ^ "Lofty loonie named Time's top Canadian newsmaker". Cbc.ca. December 20, 2007. Archived from the original on June 5, 2008. Retrieved March 2, 2011.
  37. ^ "Triennial Central Bank Survey Foreign exchange turnover in April 2016" (PDF). Triennial Central Bank Survey. Basel, Switzerland: Bank for International Settlements. 11 December 2016. p. 7. Retrieved 22 March 2017.
  38. ^ The total sum is 200% because each currency trade always involves a currency pair; one currency is sold (e.g. US$) 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 87% of all trades, whereas the Euro is bought or sold 31% of the time.
  39. ^ "Benchmark currencies of the world". Bloomberg.com. Retrieved March 2, 2011.
  40. ^ "A Look At The History Of The Canadian Dollar". KnightsBridgeFX. Retrieved Feb 11, 2019.

External links

Bank of Canada

1962 Canadian federal election

The Canadian federal election of 1962 was held on June 18, 1962 to elect members of the House of Commons of Canada of the 25th Parliament of Canada. When the election was called, Progressive Conservative (PC) Prime Minister John Diefenbaker had governed for four years with the then-largest majority in the House of Commons in Canadian history.

This election reduced the PCs to a tenuous minority government as a result of economic difficulties such as high unemployment and a slumping Canadian dollar, as well as unpopular decisions such as the cancellation of the Avro Arrow. Despite the Diefenbaker government's difficulties, the Liberal Party, led by Lester Pearson, was unable to make up enough ground in the election to defeat the government. For Social Credit, routed from the Commons just four years earlier, this election proved to be their most successful ever - they would never better the 30 seats won, losing seats in 1963 despite gaining a slightly better share of the vote.

This was the first election in which all of Canada's Indigenous Peoples had the right to vote after the passage in March 31, 1960 of a repeal of certain sections of the Canada Elections Act. For the first time ever, the entire land mass of Canada was covered by federal electoral districts (the former Mackenzie River riding was expanded to cover the entire Northwest Territories).

2018 Canada banknote series

An eighth series of banknotes of the Canadian dollar is being released by the Bank of Canada starting in 2018. Like the preceding series, these are polymer banknotes designed to increase durability and to incorporate more security features. It is the first banknote series issued by the Bank of Canada printed in a vertical configuration.

The banknotes were designed by the Canadian Bank Note Company, which also prints the banknotes. The first note, the $10, was revealed on International Women's Day, March 8, 2018, and was released to the public on November 19, 2018. Future notes will come at a slower pace than previous series to allow technological innovations to be worked into their design as time goes on.

Banknotes of the Canadian dollar

Banknotes of the Canadian dollar are the banknotes or bills (in common lexicon) of Canada, denominated in Canadian dollars (CAD, C$, or $ locally). Currently, they are issued in $5, $10, $20, $50, and $100 denominations. All current notes are issued by the Bank of Canada, which released its first series of notes in 1935. The current series of polymer banknotes were introduced into circulation between November 2011 and November 2013. Banknotes issued in Canada can be viewed at the Currency Museum of the Bank of Canada in Ottawa.

British Columbia dollar

The dollar was the currency of British Columbia between 1865 and 1871. It replaced the British pound at a rate of 1 pound = 4.866 dollars and was equivalent to the Canadian dollar, which replaced it. The dollar was subdivided into 100 cents. No distinct coins were issued, with Canadian coins circulating.

The dollar was adopted as the currency of the then separated Colony of Vancouver Island in 1863. It therefore became the currency of the united colony formed in 1866.

Canadian ten-dollar note

The Canadian ten-dollar note is one of the most common banknotes of the Canadian dollar.

The current $10 note is purple, and the obverse features a portrait of Viola Desmond, a Black Nova Scotian businesswoman who challenged racial segregation at a film theatre in New Glasgow, Nova Scotia, in 1946. The background of the portrait is a colourful rendition of the street grid of Halifax, Nova Scotia, including the waterfront, Citadel and Gottingen Street, where Desmond's Studio of Beauty Culture was located. Foil features on the note face include both the Flag and Coat of Arms of Canada. This is the first Canadian banknote to feature neither a prime minister nor a royal in its solo portrait, and the first to feature a solo female Canadian other than the Queen.

The reverse features the Canadian Museum for Human Rights in Winnipeg, Manitoba. Part of the background pattern mirrors the museum's interior architecture and its ramps connecting multiple levels. A foil eagle feather is prominent, symbolizing ideals such as truth, power and freedom. A quotation from section 15 of the Canadian Charter of Rights and Freedoms appears in both English and French.

The foil window at the base of the note includes an iridescent rendering of the Library of Parliament's vaulted dome ceiling, which can be seen from both sides of the note.

The vertical $10 note entered circulation on November 19th, 2018.

Centime

Centime (from Latin: centesimus) is French for "cent", and is used in English as the name of the fraction currency in several Francophone countries (including Switzerland, Algeria, Belgium, Morocco and France).

In France the usage of centime goes back to the introduction of the decimal monetary system under Napoleon. This system aimed at replacing non-decimal fractions of older coins. A five-centime coin was known as a sou, i.e. a solidus or shilling.

In Francophone Canada ​1⁄100 of a Canadian dollar is officially known as a cent (pronounced /sɛnt/) in both English and French. However, in practice, the form of cenne (pronounced /sɛn/) has completely replaced the official cent. Spoken and written use of the official form cent in Francophone Canada is exceptionally uncommon.

In the Canadian French vernacular sou, sou noir (noir means "black" in French), cenne, and cenne noire are all widely known, used, and accepted monikers when referring to either ​1⁄100 of a Canadian dollar or the 1¢ coin (colloquially known as a "penny" in North American English).

Coins of the Canadian dollar

Canadian coinage is the coinage of Canada, produced by the Royal Canadian Mint and denominated in Canadian dollars ($) and the subunit of dollars, cents (¢). An effigy of the reigning monarch always appears on the obverse of all coins. There are standard images which appear on the reverse, but there are also commemorative and numismatic issues with different images on the reverse.

Commemorative banknotes of the Canadian dollar

Four banknotes of the Canadian dollar have been commemorative issues. The first was issued in 1935 to the silver jubilee of the accession of George V to the throne of the United Kingdom, the only $25 banknote ever issued by the Bank of Canada. The second commemorative banknote was the Centennial $1 banknote issued in January 1967 to commemorate the Canadian Centennial. The third was issued in September 2015 to commemorate Elizabeth II becoming the longest-reigning monarch of the United Kingdom and Canada. In 2017, the Bank of Canada released a commemorative $10 banknote for Canada's sesquicentennial, which was available by Canada Day.

Dollarama

Dollarama Inc. is a Canadian dollar store retail chain headquartered in Montreal. Since 2009, it has been Canada's largest retailer of items for four dollars or less. Dollarama has over 1000 stores and has a presence in every province of Canada; Ontario has the most stores.

Great Canadian Dollar Store

Great Canadian Dollar Store Ltd. (GCDS) is a privately owned Canadian franchise dollar store. The discount merchandiser was founded in 1993 by Bud and Vivian Walker, with the set-up of a head office in Victoria, British Columbia and opening of the first BC store in Kamloops. Over 110 franchised stores are located across Canada, including the Yukon, British Columbia, Alberta, Manitoba, Ontario, Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland. In 2015 Great Canadian Dollar Store was purchased by Kevin & Jane Kane of Quispamsis, NB.

History of the Canadian dollar

Canada has an extensive history with regard to its currencies. Prior to European contact, indigenous peoples in Canada used items such as wampum and furs for trading purposes, which continued when trade with Europeans began.

Wampum and beaver pelts were considered currency. During the period of French colonization, coins were introduced, as well as one of the first examples of paper currency by a western government. During the period of British colonization, additional coinage was introduced, as well as banknotes. The Canadian colonies gradually moved away from the British pound and adopted currencies linked to the United States dollar. With Confederation in 1867, the Canadian dollar was established. By the mid-20th century, the Bank of Canada was the sole issuer of paper currency, and banks ceased to issue banknotes.

Canada began issuing its own coins shortly after Confederation. In the 20th century, Canada has issued many commemorative coins into circulation, temporarily replacing current coinage designs. There also exists a long history of numismatic coin issues.

Loonie

The loonie (French: huard), formally the Canadian one-dollar coin, is a gold-coloured coin that was introduced in 1987 and is produced by the Royal Canadian Mint at its facility in Winnipeg. The most prevalent versions of the coin show a common loon, a bird found throughout Canada, on the reverse and Queen Elizabeth II, the nation's head of state, on the obverse. Various commemorative and specimen-set editions of the coin with special designs replacing the loon on the reverse have been minted over the years.

The coin's outline is an 11-sided curve of constant width. Its diameter of 26.5 mm and its 11-sidedness matched that of the already-circulating Susan B. Anthony dollar in the United States, and its thickness of 1.95 mm was a close match to the latter's 2.0 mm. Its gold colour differed from the silver-coloured Anthony dollar; however, the succeeding Sacagawea and Presidential dollars matched the loonie's overall hue. Other coins using a curve of constant width include the 7-sided British twenty pence and fifty pence coins (the latter of which has similar size and value to the loonie, but is silver in colour).

After its introduction, the coin became the symbol of the Canadian dollar: media often discuss the rate at which the loonie is trading against other currencies. The nickname loonie became so widely recognized that in 2006, the Royal Canadian Mint secured the rights to it. When the Canadian two-dollar coin was introduced in 1996, it was in turn nicknamed the "toonie" (a portmanteau of "two" and "loonie").

New Brunswick dollar

The dollar was the currency of New Brunswick between 1860 and 1867. It replaced the pound at a rate of 4 dollars = 1 pound (5 shillings = 1 dollar) and was equal to the Canadian dollar. The New Brunswick dollar was replaced by the Canadian dollar at par when New Brunswick entered the Canadian Confederation.

Newfoundland dollar

The dollar was the currency of the colony and dominion of Newfoundland from 1865 until 1949, when Newfoundland became a province of Canada. It was subdivided into 100 cents.

Nova Scotian dollar

The dollar was the currency of Nova Scotia between 1860 and 1871. It replaced the Nova Scotian pound at a rate of 5 dollars = 1 pound (1 dollar = 4 shillings) and was consequently worth less than the Canadian dollar (worth 4s 1.3d). The Nova Scotian dollar was replaced by the Canadian dollar at a rate of 73 Canadian cents = 75 Nova Scotian cents, thus maintaining the difference between the two currencies established in 1860.

Petrocurrency

Petrocurrency, is a neologism used with three distinct meanings, often confused:

Dollars paid to oil producing nations (Petrodollar or Petrodollar recycling) A term invented in the 1970s meaning Trading surpluses of oil-producing nations.

Currencies of oil-producing nations which tend to rise in value against other currencies when the price of oil rises (and fall when it falls).

Pricing of oil in US Dollars: Currencies used as a unit of account to price oil in the international market.

Reserve currency

A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. The reserve currency is commonly used in international transactions, international investments and all aspects of the global economy. It is often considered a hard currency or safe-haven currency. People who live in a country that issues a reserve currency can purchase imports and borrow across borders more cheaply than people in other nations because they do not need to exchange their currency to do so.

By the end of the 20th century, the United States dollar was considered the world's most dominant reserve currency. The world's need for dollars has allowed the United States government as well as Americans to borrow at lower costs, granting them an advantage in excess of $100 billion per year.

Royal Canadian Henley Rowing Course

The Royal Canadian Henley Rowing Course is a rowing facility that is located in Port Dalhousie, St. Catharines, Ontario, Canada. The facility was constructed in 1903 as a permanent venue for the Royal Canadian Henley Regatta. The facility is located on the Martindale Pond.In 1966, the facility was renovated, it was also renovated extensively in 1999 to stage the 1999 World Rowing Championships. The venue also hosted the 1970 World Rowing Championships. The venue hosted the rowing competitions at the 2015 Pan American Games held in Toronto. To stage the games the venue was again renovated, with completions scheduled completed by 2014.The venue is considered by FISA (International Rowing Federation) as a "A" class venue.An 820,000 Canadian dollar upgrade happened for the 2015 Games.

Toronto dollar

The Toronto dollar was a paper local currency used in Toronto, Ontario from 1998-2013. It had fixed exchange rates with the Canadian dollar. A lower exchange rate was used when trading Toronto dollars for Canadian dollars than vice versa, and the income from this disparity was used to fund social benefit programs.

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