Canada, located in North America, is circled by Atlantic, Pacific, Arctic Oceans and America, with its currency called CAD. It was once the colony of France, but was ceded to the British empire afterwards. Not until 1926 did Canada get its own independent diplomatic right and recognized its ‘equal status’ by British. Canada is one of the biggest economy unities in the world, ranking at 10th place. And the economic power of Canada is on a steady rising. What’s more, Canada cannot be ruled out when it comes to commodity economy due to its Geographical location and native industries, rich natural resources and significant raw material exports. Therefore, the currency of Canada is in an inevitable need for both trading and traveling. Let’s get more detailed information about the currency used in Canada.
CAD: the Currency of Canada
Canada Dollar, abbreviated as CAD, is the legal tender of Canada. In a more casual way to put it, it always be called loonie. Its sign is $, but often referred as CA$, Can$ or C$ so as to distinguish it from other dollar dominated countries. It can be further subdivided into 100 cents, just like other dollar-dominated countries. The banknotes in circulation are in denominations of $5, $10, $20, $50, $100, while the coins are denominated in 1c, 5c, 10c, 25c, 50c, $1, $2. Though not pegged to the USD, it shares an intimacy with America regarding politics, economy, and culture.
What Does CAD Looks Like?
Different forms of CAD have different appearance. Banknotes are colorful and shining, consisting of vibrant and vivid shades of red, purple, green, and orange, and yellow, just like what it shows in the following picture.
As for coins, they’ve got Canadian symbols, usually wildlife—loon, on the reverse, and an effigy of Elizabeth II on the obverse.
What Role Does CAD Play in Global Market?
CAD, the loonie, is one the the major unities in the global market for its marvelous commodity economy, with huge amount of import and export. One of the most traded currencies, it was the strongest party to against the thriving and dominant role playing by the USD in the global market. However, the role it played in the past were washed away by 2008 financial crisis.
However, it regained its vitality afterwards due to the need for natural resources it possessed of China.
What Is the Currency Used As?
CAD, the currency of Canada, though merely used and circulated in Canada, it has certain ways to be possessed.
CAD Used as Reserve Currency
First, it is regarded as a benchmark currency, which means many central banks in the whole world is restoring it as a reserve currency. The Canadian Dollar is ranked at the fifth most-held reserve currency right behind the USD, JPY, GBP and EUR, for its steady economic growth, the Canadian government’s strong sovereign position, and the stability of the country’s legal and political systems.
CAD Used as A Traveling Tool
Second, it is vitally needed when you plan to travel in Canada. It is a basic knowledge that you need to possess certain amount of local currency to your convenience. Without local money during traveling can be an exhausting thing to occur. The USD is accepted in Canada, however, U.S. bills may not be accepted everywhere, even accepted, the exchange cost may cost you a fortune.