If Canada is your next destination, you have a client portfolio mostly located in this country, or you are heavily interested in numismatics, this post will be very useful for you. In it, we will cover every important aspect of the Canadian dollar, one of the most stable currencies in the world and part of the 7 hard currencies that exist, meaning it’s not drastically responsive to inflation.
The history of Canadian dollar
Before 1867, Canada was a British colony that admitted a variety of currencies, like pesos and sterling pounds. In 1870, Canada, as an independent country, officially declared a Currency Act, which formally recognized the Canadian Dollar as the national currency. The country embraced a decimal monetary system to favor its constants negotiations with the United States.
Common abbreviations are C$ or CAD, and it’s a great example of a free-floating currency. After being linked to the value of the British coin and the gold standard, Canadian money finally reached a condition of stability in 1931. Although the value of the CAD is susceptible to the context of the global marketplace, it is considered a safe-haven currency or hard currency, which labels it as a credible store of value, highly used by investors.
Canadian coins’ obverses depicts Queen Elizabeth II.
1. Canadian cent
Now out of circulation, the production of this coin stopped in 2012. Most vendors don’t accept it anymore. It shows a Maple leaf branch. The latest version of this penny was made of copper-plated steel and had smooth edges.
The Canadian five-cent coin receives the name of Nickel due to the material it is made of. Nowadays, the Royal Canadian Mint produces them with steel. It depicts a beaver on a rock.
Despite having ten times the value of a penny, the dime is smaller in size. It pictures the Bluenose, a racing ship that became a Canadian icon in the thirties.
Officially called a 25-cent piece, it’s widely known as a quarter. It’s a versatile coin that has been used to portray multiple commemorative dates. The usual design that decorates its reverse represents a caribou.
This coin has eleven sides. The Royal Canadian Mint decided to make “loonie” the official name of the one-dollar coin. The name was a reference to the loon showed on the reverse.
It’s worth two dollars and has a distinctive design, combining two types of metals. The reverse depicts a polar bear.
Canadian paper money is produced by the Canadian Bank Note Company, according to the requirements the Bank of Canada specifies. They come in formats of 5, 10, 20, 50, and 100. Every text on the banknotes is phrased in both English and French. The newest versions are made of polymer, a material with greater durability than the paper. Canadian bills are very colorful, a characteristic that resemblances the representative colors of the seasons.
Foreign Currency and Coin Exchange often trade this currency, you can check our competitive prices and exchange your money from the comfort and security of your home on our website.
Interested in exchanging your money? Whether you are going on a trip soon, received a payment, or you are a collector, you can find the best exchange rates on our Canadian Dollars page. We have a wide selection of bills, coins, commemorative series, and outmoded currencies you can choose from.