CAD - Canadian Dollar

The Canadian dollar (abbreviated CAD) is the currency or legal tender that is used throughout Canada. It has similarities to the United States dollar in that it is divided into a hundred cents and is also referred to as a ‘buck“. A dollar sign is used as the abbreviation for the currency and it is one of the more traded currencies globally in the world today.

The Canadian dollar has much history that lead it to evolve into its current state. The Canadian dollar use to be the Canadian pound and it was equal to four United States dollars or 93 grains gold in 1841. Canada had a preference for a dollar system in the 1850’s but the British Empire that they were a territory of at the time preferred a sterling monetary system.

During the second World War in the 1930’s, there was a full conversion to a dollar system where 1.1 Canadian dollar equaled 1 U.S dollar. In the sixties the rate went to1 Canadian dollar equaling .925 U.S dollar.

Coinage of the Canadian dollar has evolved as well. In 1858, there were bronze 1 cent and silver 5 cent, 10 cent, and 20 cent coins issued by Canada. In 1870 the country issued 25 cent and 50 cent coins. There were gold five dollar and 10 dollar coins issued between 1912 and 1914. Precious metals to produce coins were later changed to less expensive metals such as copper and nickel.

Paper Canadian dollars began to be issued in the 1830’s by several colonial governments in Canada. First notes were in denominations of $1, $2, $5, $10, $20, $25, $50, $100, $500, and $1000. Presently the Bank of Canada has authorized the Canadian Bank Note Company and BA International to print all paper money in the country. Today paper money in Canada is only issued in denominations that are widely issued in the U.S, $5, $10, $20, $50, and $100.

In the past century the value of the Canadian dollar has rose and fell and various times it went above and below the value of the U.S dollar. An all time low was in 2002 when a Canadian dollar was worth only 61 cent in U.S currency. The Canadian dollar rose above the U.S. dollar for the first time in 30 years in 2007.

In recent years the Canadian dollar has also gained value on many international currencies and commodities. Many foreign countries across the world keep Canadian dollars as reserve currency. The British, Dutch, Caribbean, French, and many South American countries view it as an important investment and staple to their financial systems.