Description
Canadian Dollar (CAD) – Overview and Key Features
The Canadian Dollar (CAD) is the official currency of Canada and is recognized globally by its currency code CAD and the symbol $ or sometimes C$ to distinguish it from other dollar-denominated currencies like the US or Australian Dollar. Introduced in 1858, the Canadian Dollar replaced the Canadian pound and adopted a decimal-based system aligned with the United States for ease of trade.
The CAD is issued and regulated by the Bank of Canada, which oversees monetary policy, interest rates, and inflation control. As a free-floating currency, the value of the Canadian Dollar is determined by the global foreign exchange market based on supply and demand.
Canada is one of the world’s leading producers and exporters of natural resources, including oil, lumber, and minerals. For this reason, the CAD is often considered a “commodity currency”, meaning its value is influenced significantly by global commodity prices, especially crude oil. Economic performance, trade relationships (particularly with the U.S.), and monetary policy also affect its exchange rate.
Canadian banknotes are printed on durable polymer material featuring vibrant colors and advanced security features to prevent counterfeiting. Coins in circulation include the 1-cent (no longer minted), 5-cent, 10-cent, 25-cent, $1 (“loonie”), and $2 (“toonie”). Banknotes come in denominations of $5, $10, $20, $50, and $100, each showcasing important figures from Canada’s history and cultural heritage.
The Canadian Dollar is among the top 10 most traded currencies in the world. It is widely used in global financial markets and trusted for its stability, transparency, and backing by Canada’s strong and diverse economy. Whether used in international trade, travel, or foreign exchange, the CAD is an essential player in the global economic landscape.
