CAD (Canadian Dollar)

What is the 'CAD (Canadian Dollar)'

The CAD (Canadian Dollar) is the currency abbreviation or currency symbol for the Canadian dollar (CAD). The Canadian dollar is made up of 100 cents and is often presented with the dollar sign as C$ to allow it to be distinguished from other currencies denominated in dollars, such as the U.S. dollar (USD). CAD is considered to be a benchmark currency, meaning that many central banks across the globe keep Canadian dollars as a reserve currency.

BREAKING DOWN 'CAD (Canadian Dollar)'

The Canadian dollar has been in use since 1858 when the Province of Canada replaced the Canadian pound with its first official Canadian coins. This dollar was pegged to the U.S. dollar at par using the gold standard system of 1 dollar equaling 23.22 grains of gold.

In 1871, the federal government passed the Uniform Currency Act, which replaced the various currencies of the provinces with the one national Canadian dollar. Over its history, the Canadian dollar has moved back and forth between being pegged to the U.S. dollar and being allowed to float freely. The Canadian dollar was first allowed to float in 1950; from 1962 - 1970 it was pegged again and has since been allowed to float.

RELATED TERMS
  1. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  2. Currency Forward

    A binding contract in the foreign exchange market that locks ...
  3. Reciprocal Currency

    In the foreign exchange market, a currency pair that involves ...
  4. NZD (New Zealand Dollar)

    The currency abbreviation or currency symbol for the New Zealand ...
  5. AUD/USD (Australian Dollar/U.S. ...

    The abbreviation for the Australian dollar and U.S. dollar (AUD/USD) ...
  6. USD

    In currencies, this is the abbreviation for the U.S. dollar. ...
Related Articles
  1. Personal Finance

    Cross-Border Shopping: Bane Or Boon?

    Lower prices, better selection, lower sales tax rates and a strong Canadian dollar draw over 1.9 million Canadians over the border to shop every month.
  2. Forex Education

    What is an Indirect Quote?

    An indirect quote expresses the amount of foreign currency required to buy or sell one unit of the domestic currency in the foreign exchange markets.
  3. Stock Analysis

    Looking for Good Investments in Canada? Try These Stocks (BAM, CTC.A)

    Discover why investing in Canadian stocks makes sense and which Canadian companies to invest in even with oil prices at multi-year lows.
  4. Stock Analysis

    Is Now the Right Time to Buy Canadian Stocks?

    Learn about the Canadian stock market and why it has declined over the past five years. Understand if now is a good time to invest in Canadian stocks.
  5. Economics

    Canadian Dollar Continues To Drop, But Why?

    The Canadian dollar-US dollar exchange rate is positively related to oil prices partly due to crude oil's big share of Canada's total FX currency earnings.
  6. Forex Strategies

    Minimize Exchange Rate Risk With Currency ETFs

    Since foreign exchange rates can impact portfolio returns, investors should hedge this risk whenever possible. Currency ETFs are ideal for such a purpose.
  7. Forex Fundamentals

    Here's How You Calculate An Exchange Rate

    Struggling to get a grasp on exchange rates? Here's what you need to know.
  8. Investing

    Fundamentals Of How Canada Makes Its Money

    In terms of industry, Canada is best known for oil and gas production, but the second largest country in the world has quite the diversified economy.
  9. Economics

    Canada And Australia Dollars To Be Reserve Currencies

    The IMF upgrading the Canadian and Australian dollars to "official" reserve currency status is a recognition of reality.
  10. Stock Analysis

    Canada: A Safe Haven For Big Box Stores

    American big box stores are popping up all over Canada and these retailers are basking in the benefits of pent-up Canadian consumer demand.
RELATED FAQS
  1. How can I get 100k in a Canadian bank to a U.S. Investment firm with minimal loss ...

  2. Why did Target's (TGT) expansion into Canada fail so quickly?

    Read about the four major reasons Target's expansion into Canada ended so abruptly and quickly after expanding into northern ... Read Answer >>
  3. What do the terms weak dollar and strong dollar mean?

    The two terms, weak dollar and strong dollar, are generalizations used in the foreign exchange market to describe the relative ... Read Answer >>
  4. How can I trade in cross currency pairs if my forex account is denominated in U.S. ...

    The forex market allows individuals to trade on nearly all of the currencies in the world. However, most of the trading is ... Read Answer >>
  5. How are international exchange rates set?

    International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency ... Read Answer >>
  6. How are foreign exchange rates affected by commodity price fluctuations?

    In the foreign exchange (forex) market, currency valuations move up and down as a result of many factors, including interest ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center