Canadian Dollar - CAD

Overview

The Canadian Dollar (CAD) is the official currency of Canada. The symbol used for the Canadian Dollar is $, or C$ to distinguish it from other dollar currencies. The Canadian Dollar is subdivided into 100 cents.

Economy

• Canada is rated the 9th largest economy in the world.
• The economy of Canada is wealthy and stable.
• Unemployment rate in Canada is estimated at 7.2%.
• The main industries are chemicals, wood, paper products, food products, minerals, and transport equipment.
• Export products are aircraft, telecommunications, timber, petroleum, crude, electronics, plastics, and machinery.
• Import products are motor vehicles, machinery, equipment, durable goods, electricity, chemicals, and electronics.
• 71% of the GDP is accounted for by the service industry.

History

• The province of Canada adopted the Canadian Pound in 1841.
• In 1851, Canada passed legislation and the pound sterling was introduced.
• In 1853, the gold standard was introduced in Canada.
• Decimal coinage was introduced in Canada in the year 1858.
• The gold standard rate was fixed until 1990.
• In 1867, Canada, Nova Scotia, and New Brunswick united and became the Dominion of Canada. Their three currencies were also united.
• In 1871, Prince Edward Island joined the Dominion of Canada.
• During the First World War the gold standard was abandoned temporarily and was dissolved in 1933.
• The Canadian dollar exchange rate was fixed to the US Dollar at 1.1 CAD = 1 USD during the Second World War.
• In 1949, use of the British Pound was terminated and the Dollar remained pegged to the USD at 1.1 CAD = 1 USD.
• In the 1950s Canada decided to have a floating currency; however, in 1962 the currency became a fixed exchange rate again at 0.925 USD = 1 Canadian Dollar. The peg was kept until 1970.
• After 1970, the Canadian dollar became a floating currency.

General Information