Toronto Dollar

DEFINITION of 'Toronto Dollar'

A local currency used in Toronto, Canada, primarily in the St. Lawrence Market and Gerard Square areas. Only local businesses accept Toronto dollars, which are part of an initiative to encourage consumers to shop locally. Consumers can obtain Toronto dollars at designated local outlets and spend them with any local merchant that accepts them. Toronto dollars are paper bills that come in denominations of 1, 5, 10 and 20 dollars.

BREAKING DOWN 'Toronto Dollar'

In circulation, one Toronto dollar is worth one Canadian dollar. When consumers exchange Canadian dollars for Toronto dollars, ten cents of every Canadian dollar goes to support local community organizations and the other 90 cents goes into a reserve to support redemptions of Toronto dollars. Consumers receive one Toronto dollar for every Canadian dollar they exchange, but businesses only receive 90 cents for every Toronto dollar they redeem.

RELATED TERMS
  1. S&P/TSX Composite Index

    The Canadian equivalent to the S&P 500 market index in the ...
  2. Fiscal Localism

    Institutionalized monetary exchange focused upon local and regional ...
  3. Community Currency

    A form of paper scrip issued at the county, town or community ...
  4. CAD (Canadian Dollar)

    The currency abbreviation or currency symbol for the Canadian ...
  5. Canada's New Stock Exchange - CNQ

    An alternative stock exchange for micro-cap and emerging companies ...
  6. Ithaca HOURS

    A local currency used in Ithaca, New York,, and pegged at $1 ...
Related Articles
  1. Economics

    The 3 Biggest Canadian Banks (RY, TD)

    Examine some of the largest banks in Canada, which also rank among the largest and most important banks in the industry worldwide.
  2. Investing Basics

    The United States Vs. Canada - Differences In Investing

    While there are certainly some differences, American and Canadian investors have more in common than not.
  3. Stock Analysis

    The Top 4 Stocks Listed on the Toronto Stock Exchange for 2016 (T.TO, IPL.TO)

    Understand what's happening with the Toronto Stock Exchange in 2016. Learn about four of the top stocks on the Toronto Stock Exchange for the coming year.
  4. Forex Education

    Dollarization Explained

    Find out how fledgling economies can find some stability in their currency and attract foreign investment.
  5. Personal Finance

    How To Make Your Money Matter

    If you want your money to mean something, here are some noble ways to spend it.
  6. Stock Analysis

    Canada ETFs: 9 Ways To Play

    When it comes to diversifying your portfolio, many investors often overlook the dynamic economy of our Northern neighbor. Canada is home to one of the most commodity-intensive developed economies ...
  7. Stock Analysis

    3 Stocks to Bet on a Surge in Canada's Economy (RCI, RY)

    Find out which three Canadian stocks could stand to benefit from a surge in the country's economy. These stocks offer low share prices and high dividends.
  8. Stock Analysis

    Canadians, Look Before You Leap South

    Before painting their portfolios red, white, and blue, Canadian income investors need to understand the drawbacks of playing the market from across borders, writes John Heinzl of Globe Investor. ...
  9. Forex Education

    The U.S. Dollar's Unofficial Status as World Currency

    Discover how and why the U.S. dollar emerged as official currency in many foreign countries.
  10. 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.
RELATED FAQS
  1. How does investing in the banking sector differ between the U.S. and Canada?

    Discover why some investors prefer Canadian to U.S. banks. Learn how trades of Canadian bank shares are executed in both ... Read Answer >>
  2. Do all international markets trade between 9:30am and 4pm local time?

    The New York Stock Exchange and Nasdaq both trade between 9:30am and 4pm Eastern Time. All major stock exchanges trade at ... Read Answer >>
  3. Is Canada a developed country?

    Find out how Canada fares as a developed country, boosted by its economic strength and a strong standard of living for Canadian ... Read Answer >>
  4. How does the landscape of the financial services sector in the U.S. compare to Canada?

    Read about the financial services sector in the United States and Canada, two countries that represent each other's largest ... Read Answer >>
  5. How do you compare the Dow Jones Industrial Average (DJIA) and the Toronto Stock ...

    See how the Dow Jones Industrial Average and TSX Composite move according to factors in their respective countries and from ... Read Answer >>
  6. 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 >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. 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 ...
  3. White Squire

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

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. 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, ...
  6. 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.
Trading Center