Toronto Dollar

AAA

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.

INVESTOPEDIA EXPLAINS '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. Fiat Money

    Currency that a government has declared to be legal tender, but ...
  2. Stroud Pound

    A local, private currency launched in the British town of Stroud, ...
  3. BerkShares

    A local currency used in the Berkshires, a region in western ...
  4. Silver Certificate

    Former legal tender (paper currency) issued by the U.S. government ...
  5. Reserve Currency

    A foreign currency held by central banks and other major financial ...
  6. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
Related Articles
  1. Forex Strategies

    Canada's Commodity Currency: Oil And The Loonie

    When the price of oil goes up, don't worry about how much gas is going to cost - get even by making a play on the Canadian dollar.
  2. Economics

    What You Should Know About Inflation

    Find out how this figure relates to your investment portfolio.
  3. Forex Education

    Dollarization Explained

    Find out how fledgling economies can find some stability in their currency and attract foreign investment.
  4. Forex Education

    History Of Coinage In The U.S.

    From the barter system to commemorative coins, we look at the history of U.S. money.
  5. Forex Education

    3 Factors That Drive The U.S. Dollar

    We look at three important factors that affect U.S. dollar value, and how to determine when it's the right time to buy currency.
  6. Chart Advisor

    Why You Must Watch These Currency ETF Trade Levels

    Major currencies have been pushed lower on U.S. dollar strength. Here are trade setups for if the trend continues, or reverses.
  7. Investing

    The Best Way To Approach The Currency Hedge

    Currency is going to continue to be an important factor in investment choices, particularly as the dollar strengthens.
  8. Economics

    Does A Junk Rating Reflect Russia's Fundamentals?

    Moody’s, like other credit rating agencies, has downgraded Russia’s sovereign debt rating to non-investment grade, but does this reflect Russia's economy?
  9. Investing

    Hedged ETFs That Help You Cushion Currency Impact

    If you’re an investor holding non-U.S. assets, the returns on your investments will be affected when you translate your investment from its local currency
  10. Investing

    How To Take Advantage Of A Stronger U.S. Dollar?

    If you are invested in the market, you will feel the effects of a stronger dollar, especially if overseas interests are part of your diversified portfolio

You May Also Like

Hot Definitions
  1. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  2. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  3. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  6. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
Trading Center