Canadian Dollar (CAD)
Canadian dollar (CAD / C $) or Canada Dollars as it is sometimes erroneously called, was introduced in 1858 and replaced the Canadian pound.
Below you can read our in-depth guide about Canadian Dollar:
- Common names for Canadian Dollar
- Countries with Canadian Dollar
- How much are the CAD traded?
- Currency symbol and ISO-code
- Currency crisis with CAD
- Bank of Canada
- Trade Canadian Dollar
- History of the Canadian Dollar Dollar
- CAD vs other currencies
- Pictures of Canadian Dollar notes
Common names for Canadian Dollar
Loonie and Buck are two English nickname for the Canadian currency, while ‘Huard’ and ‘Piastres’ are some of the most common French names being used. The short currency symbol used by forex traders and money exchange offices are CAD.
Countries with Canadian Dollars
The only official country using Canadian dollar is Canada. Among the unofficial countries using CAD are Saint Pierre and Miquelon, two French Islands.
How much is the AUD traded?
Currency symbol and ISO-code
The only official ISO code as currency traders and money exchange offices are using is CAD.
History of Canadian Dollar
Published in 1858, Canadian dollar replaced in part the old currency, the Canadian pound. Several current state government was still a colony of Great Britain.
At the outbreak of World War II, the exchange rate against U.S. dollar was fixed at 1.1 Canadian dollars.
For further 100 years, Canada hesitated if they would turn to the Pound Sterling or create a Canadian dollar. Newfoundland and its currency Newfound dollars was the last state to switch to Canadian Dollars.
Currency Crises with CAD
The Canadian dollar fell sharply in value against the U.S. dollar during the technology boom in the late 1990s, where the U.S. drew the longest straw. CAD/USD traded for as low as 61.79 ¢ (cents) in January 21 (2002), a record low. Over the next five years of the 2000s, the Canadian dollar increased in value by over 50%, not least because of high prices for commodities. Canada is a major exporter of brent oil and crude oil.
Bank of Canada
Bank of Canada has four main objectives::
- Stable prices: Bank of Canada pursues a low inflation (1-3% per year)..
- Financial system:: Promotes a safe, sound and efficient financial systems.
- Unemployment rate:: Maintenance of full employment in Canada.
- Economic motives: Economic prosperity and welfare for the people of Canada.
Online Forex Trading with Canadian Dollar
Canadian Dollar (CAD) is the 8th most traded currency pair. Trading currency with CAD is common among both individuals and international companies with currency exposure against Canada. The Canadian government showed in the beginning of 2010 they has the most stable banking system in the world and a high level of social welfare.
The economy is heavily influenced by commodity prices. The currency in Canada is popular among online forex traders because of the diversification opportunities that an investment in the currency gives. Since over 80% of Canada’s exports go to the U.S. and over 55% of imports into the country comes from the U.S., Canadians are primary interested in this currency cross (USD/CAD).
Bank of Canada has no specific target value for the Canadian dollar and has not intervened in currency markets since 1998. A number of central banks and commercial banks use the Canadian dollar as an alternative reserve currency. The Canadian dollar has been of important value for the British, French and Dutch colonies in the Caribbean since the 1950s. CAD is also held by many central banks in Central America and South America.
The Canadian Dollars value against other currencies
The Australian Dollar is traded freely under floating exchange rate. Canada’s currency has increased it’s value against the U.S. Dollar from 2005-10. It is expected to continue to be a good investment.
Pictures of Canadian notes
Below are some common notes from Canada.
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