Canada is a country adjacent to the United States and is a popular destination, for many people who visit it when traveling to the United States. Even if you are interested in Canada, few people know the currency of Canada in detail.
Therefore, in this article, we will introduce you to Canadian currency.
About Canadian Currency:
The currency of Canada is referred to as “dollar” for banknotes and “cent” for coins and is collectively called the Canadian dollar.
There are five types of banknotes and coins, including banknotes of $100, $50, $20, $10, $5, and coins of $2, $1, 25 cents, 10 cents, and 5 cents. Canadian banknotes are made of a plastic called “polymer”, the banknotes are therefore very durable in everyday use.
There used to be a dime denomination, but it was abolished in 2013. Therefore, in Canada, change is not paid out in units of 5 cents or less for cash payments. Please note that if the amount is less than 5 cents, it may be round up or down.
The Canadian dollar rate is the same as any other currency and fluctuates daily. Therefore, always check the latest conversion rate information on this site for assistance.
Features of the Canadian dollar:
Although Canada is a member of the Commonwealth of Nations, its geographical relationship is economically closely linked to the United States, and the Canadian dollar behaves very much like the US dollar.
Canada is also rich in energy in mineral resources such as oil, natural gas, and metals, and is also blessed with abundant forestry resources. Therefore, the Canadian dollar has another positive in being a resource-rich currency. The shale revolution has been a further big plus for crude oil production in Canada as well as in the United States.
Monetary policy is managed by the central bank – the Bank of Canada (BOC). Due to the high economic ties with the United States, monetary policy tends to follow the US Federal Reserve Board (FRB).
The Canadian dollar is characterized by being sensitive to crude oil prices. The Canadian dollar is likely to rise when crude oil prices are rising, and conversely, the Canadian dollar is likely to fall when crude oil prices are falling.
Canadian Dollar Exchange Trends:
Canadian dollar volatility:
Main rising factors
|International affairs||Rising crude oil prices|
|Politics||VIP Canadian dollar high guidance/acceptance remarks|
|Financial policy||Monetary tightening (increasing observations)|
|Economic indicators||Economic indicators such as manufacturing PMI and monthly GDP that reflect good numbers or exceed market expectations|
|Other||Rising prices of resources such as crude oil|
Main factors of decline
|International affairs||Rising crude oil prices|
|Politics||Political instability (increasing)|
|Financial policy||Monetary easing (increasing observations)|
|Economic indicators||If economic indicators reflect numbers below market expectations|
|Other||Deterioration of fiscal balance and current account balance, stock price depreciation and market interest rate decline|
The rising and falling factors are general guidelines depending on the current environment, and the price movement may be the exact opposite depending on the degree of attention and perspective of the market.
Canada economic and trade data:
|Nominal GDP amount||US $ 1.653 trillion (2017 Source: IMF)|
|Real GDP growth rate||3.1% (2017 Source: IMF)|
|GDP per capita||US $ 45,095 (2017 Source: IMF)|
|Budget deficit to GDP ratio||1.09% (2017 Source: IMF)|
|Consumer price index increase rate||1.6% (2017 Source: IMF)|
|Unemployment rate||6.3% (2017 Source: IMF)|
|Current balance (balance of payments basis)||-48,752 million US dollars (2017 Source: IMF)|
|Trade balance (balance of payments base, goods)||-US $ 18,667 million (2017 Source: JETRO)|
|Foreign currency reserves||US $ 86,678 million (2017 Source: JETRO)|
|Export value||US $ 418,857 million (JETRO 2017)|
|Import value||US $ 457,456 million (2017 JETRO)|
|Export items (upper items)||Mineral fuels, automobiles and their parts, consumer goods such as food and clothing, base metals, general machinery|
|Imported items (upper items)||Automobiles and their parts, general machinery, electrical equipment|
|Export partner country (higher country/region)||USA, China, UK, Japan, Mexico|
|Import partner country (upper country / region)||USA, China, Mexico, Germany, Japan|
Handling of US dollars in Canada:
Many people come from the United States for work or travel. As a result, the US dollars circulating in the United States are well mixed with Canadian banknotes. In fact, they are so similar, it is sometimes difficult to distinguish them from mixed banknotes.
- Some shops accept US dollars:
The US dollar is distinguished from the Canadian currency. However, many shops and stores will allow you to pay in US dollars.
- US dollars may be included in the change:
Many customers pay in US dollars, so the change may be returned in US dollars. However, it is only usually coins, and banknotes are often returned in Canadian currency. Since the coins are similar to US currency, it may be difficult for the serving clerk to notice.
The currency circulated in Canada is called the “Canadian dollar”, and the bills are called “dollars” and the coins are called “cents”. There are 5 types of banknotes and 5 types of coins.
There are many different ways to convert the Canadian Dollar to the US Dollar. The rates are different for each method, and the fees and labor are different.
It is often said that Canada uses credit cards more often than cash. Therefore, credit cards can be used at most facilities, so if you do not have one, we recommend that you take a credit card as well before traveling.