Canadian Dollar (symbol: $ ; code: CAD ; French: dollar canadien ) is the Canadian currency. This is abbreviated to the dollar sign $ , or sometimes Can $ or C $ to distinguish it from other dollar denominated currencies. It is divided into 100 cents (Ã, Â ¢).
Since the loon is a one-dollar coin, it is sometimes referred to as a loonie by foreign exchange traders and analysts, as do typical Canadians, or huard in French.
Taking into account about 2% of all global reserves, the Canadian dollar is the fifth largest reserve currency in the world, behind the US dollar, euro, yen, and pound sterling. The Canadian dollar is popular with central banks due to the relative health of Canadian economies, the strong Canadian government's sovereign position, and the stability of the country's legal and political systems.
Video Canadian dollar
History: From Canadian pound to Canadian dollar
The 1850s was a decade of debate whether to adopt a monetary sterling system or a decimal monetary system based on the US dollar. The British North American province, for reasons of practicality in relation to increased trade with its neighboring United States, had a desire to assimilate their currency with American units, but the imperial authorities in London still preferred sterling as the single currency across the British Empire. Nevertheless, the British provinces of North America gradually adopted the currency associated with the US dollar.
Province of Canada
In 1841, the Canadian Province adopted a new system based on Halifax ratings. The new Canadian pound equals four US dollars (92.88 gold grains), making a pound of sterling equal to 1 pound, 4 shillings, and 4 Canadian pence. Thus, the new Canadian pound is worth 16 shillings and 5.3 pence sterling.
In 1851, the Canadian Provincial Parliament passed a law for the purpose of introducing a pound sterling unit in relation to decimal denominations. The idea is that the decimal coins will match the exact amount in relation to the dollar coins.
In response to British concerns, in 1853 an act of Canadian Provincial Parliament introduced the gold standard to the colony, based on both the sovereignty of British gold and the golden American eagle coins. This gold standard was introduced with a golden ruler which is a valid payment instrument at Ã, Â £ 1 = US $ 4,86 ​​â € <â € < 2 / 3 . No coins are provided for the 1853 action. Coin sterling is made as a valid payment instrument and all other silver coins are demonized. The British government in principle allows for decimal coins but still holds out the hope that the sterling unit will be chosen under the name "kingdom". However, in 1857, a decision was made to introduce decimal coins to the Canadian Province along with US dollar units. Therefore, when the new decimal coin was introduced in 1858, the currency of the colony became parallel to the US currency, although British gold sovereignty remained a legitimate means of payment at a rate of Ã, Â £ 1 = 4,86 ​​â € <Â € < 2 / 3 until the 1990s. In 1859, Canadian colonial stamps stamps were issued in decimal denominations for the first time. In 1861, Canadian stamps were issued with denominations indicated in dollars and cents. New Brunswick and Nova Scotia
In 1860, the colonies of New Brunswick and Nova Scotia followed the Canadian Province in adopting a decimal system based on US dollar units.
Newfoundland
Newfoundland went decimal in 1865, but unlike the Canadian provinces, New Brunswick, and Nova Scotia, decided to adopt units based on the Spanish dollar rather than on the US dollar, and there was little difference between the two units. The US dollar was made in 1792 based on the average weight of a number of Spanish dollars imposed. Thus, the Spanish dollar is worth slightly more than the US dollar, and also, the Newfoundland dollar, until 1895, is worth little more than the Canadian dollar.
British Columbia
The British Columbia colony adopted the British Columbia dollar as its currency in 1865, equivalent to the Canadian dollar. When British Columbia joined the Confederation in 1871, the Canadian dollar replaced the British Columbia dollar.
Prince Edward Island
In 1871, Prince Edward Island became decimal in units of US dollars and introduced coins for 1Ã, Â ¢. However, the currency of Prince Edward Island was absorbed into the Canadian system shortly afterwards, when the island of Prince Edward joined the Dominion of Canada in 1873.
Confederation
In 1867, Canadian provinces, New Brunswick, and Nova Scotia united in a federation called Canada and three currencies combined into Canadian dollars. The Canadian Parliament passed the Uniform Currency Act in April 1871, tying loose ends to the currencies of various provinces and replacing them with the usual Canadian dollar.
Evolution in the 20th century
The temporary gold standard was abandoned during the First World War and was delisted definitively on 10 April 1933. At the outbreak of the Second World War, the US dollar exchange rate was set at C $ 1.10 = US $ 1.00. It was converted into parity in 1946. In 1949, sterling was devalued and followed by Canada, returning to the stake C $ 1.10 = US $ 1.00. However, Canada allowed the dollar to float in 1950, where the currency rose to a slight premium over the US dollar for the next decade. But the Canadian dollar fell sharply after 1960 before re-pegged in 1962 at C $ 1.00 = 0.925 US dollars. This is sometimes humbly referred to as "Diefenbuck" or "Diefendollar", after the Prime Minister, John Diefenbaker. The stake survived until 1970, after the value of its currency drifted.
Maps Canadian dollar
Terminology
Canadian English, such as American English, uses the slang term "money" for paper dollars. The origin of Canada this term comes from a coin that was attacked by the Hudson Bay Company during the 17th century with the same value as the male beaver - the "money". Because of the general loon sighting behind a $ 1 coin that replaced the dollar in 1987, the word "loonie" was adopted in Canadian to distinguish Canadian dollar coins from dollar bills. When a two-dollar coin was introduced in 1996, the word "toonie" ("two loonies") became a common word in Canadian English.
In France, this currency is also called le dollars ; The French slang term includes French piastre or piasse (the original word used in the 18th century French to translate "dollars") and huard (equivalent to "loonie", because huard is French for "loon," bird it appears on the coin). French pronunciation sen (pronounced similar to English as /s? nt/ or /s? n/, unlike words for a hundred, /s ??/ or /sÃÆ' Â £/) is generally used for subdivisions; sou is another term, informal, for 1 Â ¢. 25 Â ¢ coins in Quebec France is often referred to as "trente sous (" thirty cents ") due to a series of changes in terminology, currency, and exchange rates. After the British conquest in Canada in 1760, French coins gradually began to be used, and sou became the nickname for halfpenny, which is the same value as France sou . The Spanish and US dollars were also used, and 1841-1888, the fixed exchange rate at $ 4 = Ã, Â £ 1 (or 400 Â ¢ = 240d). This makes 25 ¢ equal to 15d, or 30 halfpence ( trente sous ). After the decimalization and withdrawal of halfpence coins, the nickname sou began to be used for coins 1Ã, Â ¢, but idioms trente sous for 25 Â ¢ last.
Coins
Coins were produced by the Royal Canadian Mint in Winnipeg, Manitoba, and Ottawa, Ontario, in 5 Â ¢ (nickel), 10 Â ¢ (dime), 25 ¢ (quarter), 50 Â ¢ (50 Â ¢ piece) (though 50 Â ¢ piece is no longer distributed to the bank and is only available directly from mint, so see very little circulation), $ 1 (loonie), and $ 2 (toonie). The last 1st, Â ¢ (cents) printed in Canada was beaten on Friday, May 4, 2012, and stopped its distribution on February 4, 2013. Since then, the price for cash transactions can be rounded to the nearest five cents. The money continues to be a legitimate means of payment, even though they are only accepted as payment, and are not given back as change.
The standard design series has Canadian symbols, usually wildlife, on the contrary, and a statue of Elizabeth II on the front. A few pennies, cents, and dimes remain outstanding that contain a statue of George VI. It's also common for American coins to be found among the circulation as it is close to the United States and the fact that the coin size is similar. Warning coins with different reversals are also issued irregularly, most often quarters. 50 Â ¢ 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 coins 1 Â ¢ and 0.925 silver 5 Â ¢, 10 Â ¢ and 20 Â ¢ were issued by the Canadian Province. Except for the 1 ¢ coin struck in 1859, no coin was issued until 1870, when the production of 5 Â ¢ and 10 Â ¢ was continued and the silver 25 Â ¢ and 50 Â ¢ were introduced. Between 1908 and 1919, the rulers (legal tender in Canada for $ 4.86 3 ) struck in Ottawa with "C" mintmark.
Canada earned the first gold dollar coins in 1912 in the form of $ 5 and $ 10. These coins were produced from 1912 to 1914. The front carries a picture of King George V and vice versa is a shield with the Dominion of Canada arm. Gold from the Klondike River valley in Yukon contributes a lot of gold in coins.
Two years into World War I coin production started and coin production stopped supporting 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 they were sold in 2012. High-quality specimens are sold to the public and those that do not attract the visuals melt.
In 1920, the size of 1Ã, Â ¢ was reduced and the silver smoothness of 5 Â ¢, 10 Â ¢, 25 Â ¢ and 50 Â ¢ coins reduced to 0.800 silver/.200 copper. This composition was maintained for 10Ã, Ã, Ã ¢, 25Ã, Â ¢ and 50Ã, Â ¢ ions until 1966, but the cut in 5Ã,, Â ¢ continued in 1922 with silver 5 Â ¢ entirely replaced by larger nickel coins. In 1942, as a wartime measure, nickel was replaced by a tombac in a 5 Â ¢ coin, which was transformed from a round to a dodecagonal. Chromium-coated steel was used for 5Ã, Â ¢ in 1944 and 1945 and between 1951 and 1954, after nickel was read back. The 5 Â ¢ returned to its round shape in 1963.
In 1935, voyageur 0.800 silver dollars were introduced. Production was maintained until 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/0.500 copper 10 Â ¢ and 25 Â ¢ coins were removed. 1968 saw further decline: 0.500 silver and silver dice quarter completely replaced by nickel by mid-year. All 1968 coins 50Ã, Â ¢ and $ 1 are reduced in size and found only in pure nickel. Thus, 1968 marks the final year in which any outstanding silver coin is issued in Canada.
In 1982, the coin 1 Â ¢ was changed to dodecagonal, and 5 Â ¢ even lower became a cupro-nickel alloy. In 1987, a $ 1 coin thrown in aureate-coated nickel was introduced. The $ 2 bimetallic coin was followed in 1996. In 1997, copper-plated zinc replaced bronze in 1Ã, Â ¢, and returned to a round shape. This was followed, in 2000, by introducing coated coins 1, Â ¢, 5 Â ¢, 10 Â ¢, 25 Â ¢ and 50 Â ¢ cheaper, with 1 Â ¢ plated copper and the other nickel-plated cupro. In 2012, multilayered coated steel technology was introduced for $ 1 and $ 2 coins as well. Also in that year the coin printing 1 Â ¢ ceased and its withdrawal from circulation began in 2013.
Banknote
The first banknotes issued in Canada denominated in the US dollar were British Army bills, issued between 1813 and 1815. The Canadian bank note was subsequently issued by the leased banks beginning in the 1830s, by some pre-Confederate colonial governments (principally Canadian Province in 1866), and after the Confederation, by Dominion Canada beginning in 1870. Some cities also issued notes, especially the scrip of depression in the 1930s.
On July 3, 1934, with only 10 charter banks still issuing notes, the Bank of Canada was established. It took over the issuance of a federal memo from the Dominion of Canada. It began issuing records in denominations of $ 1, $ 2, $ 5, $ 10, $ 20, $ 25, $ 50, $ 100, $ 500 and $ 1000. In 1944, the leased banks were barred from issuing their currency alone, with the Royal Bank of Canada and Bank of Montreal among the last issuing banknotes.
Significant design changes to records have occurred since 1935, with new series introduced in 1937, 1954, 1970, 1986, and 2001. In June 2011, newly designed notes were printed on polymer substrates, as opposed to cotton fibers, announced; the first of these polymer notes, the $ 100 bill, began to circulate on November 14, 2011, the $ 50 bill began to circulate on March 26, 2012, the $ 20 denomination began to circulate on November 7, 2012, and the $ 5 and $ 10 denominations started to circulate in November 12, 2013.
All banknotes are currently printed by the Ottawa-based Canadian Bank Note Company under a contract to the Bank of Canada. Previously, the second company, BA International (founded 1866 as British American Bank Notes Company), shared a printing assignment. In 2011, BA International announced it would close its paper bank printing business and stop printing banknotes by the end of 2012.
Legal auctions
Canadian dollar banknotes issued by Bank of Canada are valid payment instruments in Canada. However, commercial transactions may be legally settled in any way approved by the parties involved.
The Canadian currency law tender is governed by the Currency Act, which sets limits:
- $ 40 if the denomination is worth $ 2 or greater but not more than $ 10;
- $ 25 if the denomination is $ 1;
- $ 10 if denominated 10 Â ¢ or greater but less than $ 1;
- $ 5 if the denomination is 5 Â ¢;
- 25Ã, Â ¢ if the denomination is 1Ã, Â ¢.
Resellers in Canada can reject paper money without violating the law. According to legal guidelines, the method of payment must be mutually agreed by the parties involved with the transaction. For example, a store may refuse a $ 100 bill if they feel they will risk becoming a fake victim; However, official policy indicates that retailers should evaluate the impact of that approach. In the absence of acceptable forms of payment for the tender, the parties involved should seek legal advice.
Canadian dollars, especially coins, are accepted by some businesses in the northernmost cities of the United States and in many Canadian snowbags, just as the US dollar is accepted by some Canadian businesses.
In 2012, Iceland is considered to adopt the Canadian dollar as a stable alternative to Icelandic Krána. Canada is favored because northern geography and similar resource-based economies, in addition to its relative economic stability. Canadian Ambassador to Iceland says Iceland can adopt the currency; although Iceland finally decided not to proceed with the proposal.
Value
Since 76.7% of Canadian exports enter the US, and 53.3% of imports to Canada are from the US. Canada is interested in the value of their currencies, especially against the US dollar. Although domestic concerns arise when dollar trading is much lower than US counterparts, there are concerns among exporters as the dollar strengthens rapidly. A rise in the value of the dollar increases Canada's export price to the US. On the other hand, there are advantages to rising the dollar, as it is cheaper for the Canadian industry to buy foreign materials and businesses.
The Bank of Canada currently has no specific target value for the Canadian dollar and has not intervened in the foreign exchange market since 1998. The official position of the Bank is that market conditions must determine the value of the Canadian dollar, although the BOC sometimes makes a small effort to influence its value.
On world markets, the Canadian dollar has historically tended to move alongside the US dollar. The rising Canadian dollar (against the US dollar) declines against other international currencies; however, during the rise of the Canadian dollar since 2002, the value of the dollar against the US dollar and other international currencies increased. In recent years, dramatic fluctuations in the value of the Canadian dollar have tended to correlate with a shift in oil prices, reflecting the status of the Canadian dollar as petrocurrency due to significant Canadian oil exports.
Canada's highest dollar exchange rate was US $ 2.78, reached on July 11, 1864 after the United States temporarily left the gold standard.
Unlike other currencies in the Bretton Woods system, whose value is set, the Canadian dollar is allowed to float from 1950 to 1962. Between 1952 and 1960, the Canadian dollar traded at a slight premium above the US dollar, reaching a high of US $ 1.0614 on August 20, 1957.
The Canadian dollar fell considerably after 1960, and this contributed to the defeat of Prime Minister John Diefenbaker in the 1963 election. The Canadian dollar returned to the fixed exchange rate regime in 1962 when its value was set at $ 0.925, where it remained until 1970.
As a measure against inflation, the Canadian dollar was allowed to float in 1970. Its value was appreciated and cost more than the US dollar for part of the 1970s. The peak point was on April 25, 1974, when it reached US $ 1.0443.
The Canadian dollar fell in value against its American counterparts during a US-based 1990 technology boom, and traded for as little as US $ 0.6179 US on Jan. 21, 2002, which was all-time lows. Since then, its value against all major currencies has risen until 2013, in part because of high prices for Canada's exported (mainly oil) commodities.
The value of the Canadian dollar against the US dollar rose sharply in 2007 due to the continued strength of Canadian economy and the weakness of the US currency in world markets. During trading on September 20, 2007, he met the US dollar at parity for the first time since 25 November 1976.
Inflation in the value of the Canadian dollar has been quite low since the 1990s. In 2007, the Canadian dollar rebounded, jumping 23% in value.
On September 28, 2007, the Canadian dollar closed above the US dollar for the first time in 30 years, at US $ 1.0052. On November 7, 2007, it reached 1.1024 US dollars during trade, the highest on a modern day after China announced it would diversify its foreign exchange reserves by 1.43 trillion dollars from the US dollar. On November 30, however, the Canadian dollar was once again equivalent to the US dollar, and on December 4, the dollar had retreated back to US $ 0.98, through interest-rate cuts made by the Bank of Canada due to concerns about exports to the US
Due to the soaring value and new high record at the time, the Canadian dollar was named after the Canadian Newsmaker of 2007 by Canadian edition magazine Time .
Since the late 2000s, the Canadian dollar has been priced at a level comparable to the years before the rapid rise in 2007. A dollar in the US 70 cents range has been the usual rate for most of the 2010s.
Reserve currency
A number of central banks (and commercial banks) keep the Canadian dollar as a reserve currency. Canadian Dollar is considered a benchmark currency.
In the US economy, the Canadian dollar plays a similar role to the Australian dollar (AUD) in the Asia-Pacific region. The Canadian Dollar (as the regional reserve currency for banks) has been an important part of the economic and financial system of British, French and Dutch countries 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 behavior against the US dollar, foreign exchange economists indirectly can observe the behavior and internal patterns in the US economy that can not be seen by direct observation. The Canadian dollar has fully evolved into a global reserve currency only since the 1970s, when it drifted against all other world currencies. Some economists attribute the importance of the Canadian dollar to the long-term effects of Nixon Shock that effectively put an end to Bretton Woods' global financial system.
Current exchange rate
See also
- Canadian Economy
- Canadian Bank Note Company
References
External links
- New Canadian Money Bank 100 (2011) on YouTube
- Royal Canadian Mint
- Canadian Paper Bank Resources for those interested in studying and collecting Canadian paper currency
- Maple Leaf Web: Canadian Dollar: Nature and Effects of Canadian Exchange Rates
Bank of Canada
- Search Exchange Rates
- Bank of Canada - bank records
Source of the article : Wikipedia
0 Comments