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Canadian dollar

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The Canadian dollar is the official currency of Canada. It is represented by the symbol $ and the international code CAD. One dollar is divided into 100 cents. This currency holds a major position in the global economy. It accounts for approximately two percent of all global reserves. This makes it the fifth-most held reserve currency in the world. It follows the US dollar, the euro, the Japanese yen, and the British pound sterling.

CAD-USD v2
CAD-USD v2

Central banks around the world hold Canadian dollars for several reasons. They value the currency because of Canada's relative economic soundness. The Canadian government also maintains a strong sovereign position. Additionally, the country's legal and political systems are considered very stable. This stability makes the Canadian dollar a popular choice for international finance.

CAD-EUR 1999-
CAD-EUR 1999-

The history of Canadian money involves many different systems. During the 1850s, there was a major debate over monetary standards. The British North American provinces wanted a decimal system. This would match the US dollar and help with increasing trade. However, imperial authorities in London preferred the British sterling system. In 1851, the Parliament of the Province of Canada passed an act for a sterling-based unit. This unit used decimal fractional coinage to relate to the US dollar.

CAN-S1666-Colonial Bank of Canada, Toronto-1 Dollar (1859)
CAN-S1666-Colonial Bank of Canada, Toronto-1 Dollar (1859)

In 1853, the Province of Canada introduced the gold standard. This was based on both the British gold sovereign and the American gold eagle. By 1857, the decision was made to adopt decimal coinage. This aligned the colony's currency with the US dollar unit. The British gold sovereign remained legal tender at a specific rate until the 1990s. In 1867, several colonies united to form the federation of Canada. This union merged various local currencies into one singular Canadian dollar. The Uniform Currency Act of 1871 finalized this common system.

USD-CAD exchange rate
USD-CAD exchange rate

Canadian coins have changed in material and value over time. In 1912, Canada produced its first gold dollar coins. These were $5 and $10 coins featuring King George V. Much of the gold used came from the Klondike River valley. World War I caused production of these gold coins to stop. Between 1920 and 1968, the silver content in many coins was reduced. This process is known as debasement. In 1968, the last year of circulating silver coinage occurred in Canada.

1871 Canadian 50 cents both
1871 Canadian 50 cents both

Today, the Royal Canadian Mint produces the nation's coins. It operates facilities in Winnipeg, Manitoba, and Ottawa, Ontario.

20060711 Monnaie Royale Canadienne à Winnipeg
20060711 Monnaie Royale Canadienne à Winnipeg

The Mint makes nickels, dimes, quarters, loonies, and toonies. The one-dollar coin is nicknamed the "loonie" because of the loon bird on its reverse. The two-dollar coin is called a "toonie." In French, the loon is called a "plongeon" or a "huard." These nicknames help people identify the coins quickly.

Canadian 1 and 2 dollar coins
Canadian 1 and 2 dollar coins

Some coins are less common in daily life. The 50-cent coin is rarely used for regular transactions. Most people keep these coins for collecting. Canada also changed how it uses the penny. The last penny was minted on May 4, 2012. Distribution of the penny ended on February 4, 2013. Now, cash transactions are rounded to the nearest five cents. While the penny is still legal tender, it is no longer used for change.

Canada's "Last Circulating Penny" on display at the Bank of Canada Museum
Canada's "Last Circulating Penny" on display at the Bank of Canada Museum
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🖼️ Images & Media (10)
File:CAN-S1666-Colonial Bank of Canada, Toronto-1 Dollar (1859).jpg
CAN-S1666-Colonial Bank of Canada,...
File:Canadian 1 and 2 dollar coins.png
Canadian 1 and 2 dollar coins.png
File:20060711 Monnaie Royale Canadienne à Winnipeg.jpg
20060711 Monnaie Royale Canadienne à Winnipeg.jpg
File:1871 Canadian 50 cents both.png
1871 Canadian 50 cents both.png
File:Canada's "Last Circulating Penny" on display at the Bank of Canada Museum.jpg
Canada's "Last Circulating Penny" on...
File:96 1 b.JPG
96 1 b.JPG
File:Ottawa - ON - Bank of Canada.jpg
Ottawa - ON - Bank of Canada.jpg
File:CAD-USD v2.svg
CAD-USD v2.svg
File:CAD-EUR 1999-.svg
CAD-EUR 1999-.svg
USD-CAD exchange rate.webp
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