The Canadian dollar (symbol $, sometimes C$ or CA$; ISO 4217 code CAD) is the official currency of Canada. One dollar is divided into 100 cents (¢). Canadian bank notes are issued by the Bank of Canada and coins are produced by the Royal Canadian Mint. Canada uses a floating exchange rate and targets low, stable inflation.
| ISO / symbol | CAD • $ (often written C$ to distinguish from other dollars) |
|---|---|
| Subunit | 100 cents (¢) |
| Issuing authorities | Bank of Canada (notes) • Royal Canadian Mint (coins) |
| Bank notes in circulation | $5 • $10 • $20 • $50 • $100 (polymer series) |
| Circulating coins | 5¢ • 10¢ • 25¢ • $1 “loonie” • $2 “toonie” (1-cent coin withdrawn from circulation in 2012) |
| Monetary policy | Inflation-control target 1–3% (2% midpoint); floating exchange rate |
| Official sites | bankofcanada.ca • mint.ca |
Overview
The Canadian dollar is a freely floating, widely traded currency used in everyday payments, savings, and international trade. The Bank of Canada conducts monetary policy (primarily by setting the policy interest rate) to keep inflation low and stable. Bank notes are printed on durable polymer with advanced security features; coins include distinctive $1 and $2 denominations nicknamed the loonie and toonie.
Denominations
| Type | Denominations (current) | Notes |
|---|---|---|
| Bank notes | $5, $10, $20, $50, $100 | Polymer substrates with transparent windows and multiple security features; older paper notes remain redeemable. |
| Coins | 5¢, 10¢, 25¢, $1, $2 | 1-cent coin discontinued for circulation in 2012; cash totals are typically rounded to the nearest 5¢. |
Legal tender and rounding
- Bank of Canada notes are legal tender across Canada. Some discontinued notes (e.g., $1, $2, $25, $500, $1,000) no longer have legal-tender status but can be redeemed at face value through the Bank of Canada.
- Since 2012, cash purchases are usually rounded to the nearest 5 cents; electronic payments (debit/credit) are not rounded.
Monetary policy and exchange rate
Canada targets 2% inflation (the midpoint of a 1–3% control range). The Bank of Canada sets the target for the overnight interest rate and communicates on eight fixed dates per year, publishing a Monetary Policy Report several times annually. The Canadian dollar floats in foreign-exchange markets; its value is influenced by commodity prices (particularly energy), interest-rate differentials with major economies, Canada’s terms of trade, and global risk sentiment.
Issuance and design
- Bank notes: Designed and issued by the Bank of Canada; features include polymer substrate, transparent windows, holographic elements, raised ink, and tactile features to assist people who are blind or partially sighted.
- Coins: Manufactured by the Royal Canadian Mint in Winnipeg and Ottawa. Commemorative circulation coins appear periodically alongside standard designs.
History (brief)
- 1858: Decimal dollar first issued for the Province of Canada (replacing pounds/shillings in practice).
- 1867–1871: Confederation; federal Uniform Currency Act (1871) standardizes the dollar across provinces.
- 1934–1935: Bank of Canada created; begins issuing bank notes.
- 1950–1962: Dollar allowed to float.
- 1962–1970: Pegged to the U.S. dollar.
- Since 1970: Free-floating exchange rate with inflation-targeting framework adopted in the 1990s.
Usage and notation
In domestic contexts the symbol $ generally denotes Canadian dollars. To avoid confusion internationally, writers use C$ or the ISO code CAD. Common currency pairs in markets include USD/CAD and EUR/CAD.
Counterfeit prevention and education
The polymer series significantly reduced counterfeiting rates. Retailers are encouraged to train staff on note verification; public resources and training materials are offered by the Bank of Canada and the Bank of Canada Museum.
See also
- Bank of Canada • Economy of Canada • Inflation in Canada
- Royal Canadian Mint • Payments Canada • Bank of Canada Museum
External links (official)
- Bank of Canada — Currency & bank notes: https://www.bankofcanada.ca/banknotes/
- Bank of Canada — Monetary policy & key interest rate dates: https://www.bankofcanada.ca/rates/interest-rates/
- Royal Canadian Mint — Circulation coins: https://www.mint.ca/
- Rounding (cash payments): search “Bank of Canada rounding guidelines” at https://www.bankofcanada.ca/