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. Vancouver Stock Exchange (VAN) ...

    Vancouver Stock Exchange (VAN) .V is a defunct stock exchange ...
  2. Bay Street

    Bay Street in Toronto is Canada's financial center and is often ...
  3. USD/CAD (U.S. Dollar/Canadian Dollar)

    Colloquially known as the loonie, USD/CAD is the abbreviation ...
  4. Community Currency

    Community currency is a form of paper scrip issued at the county, ...
  5. Big Five Banks

    The Big Five Banks is a term to describe the five largest banks ...
  6. Calgary Dollar

    The Calgary dollar is a local, complementary currency that was ...
Related Articles
  1. Trading

    Why U.S. Dollars Aren't Accepted in Canada

    Is the U.S. dollar accepted in Canada? Learn about the legal and practical aspects of using U.S. dollars in Canadian transactions.
  2. Investing

    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. Investing

    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. Trading

    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.
  5. Investing

    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. Investing

    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.
  7. Trading

    Top Companies Trading On The Toronto Stock Exchange

    Canadian stock markets are home to some of the best companies across sectors such as finance, energy, mining and minerals.
  8. Small Business

    3 Ways You Can Support Small Business Growth

    Discover a number of different options available to support small business growth, including crowdfunding campaigns and shopping locally.
  9. Investing

    Canada Goose IPO Opens Above IPO Price

    The parka power's IPO opened up more than 40 percent, but shares are retreating mid-morning.
  10. Investing

    Panera Heads North Of The Border

    Panera continues its Canadian expansion after opening three bakery-cafés in the Toronto-area in 2011, with five more planned for 2012.
RELATED FAQS
  1. What do the terms weak dollar and strong dollar mean?

    The terms weak dollar and strong dollar are used in the foreign exchange market to describe the relative strength of the ... Read Answer >>
  2. Trading hours of world's major stock exchanges

    Learn about stock exchange trading hours, the opening and closing times of some major global stock market exchanges, and ... Read Answer >>
  3. 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 >>
  4. On what days are the American stock exchanges closed?

    Similar to most businesses, the major stock markets in North America are open for trading on normal business days only (excepting ... Read Answer >>
Hot Definitions
  1. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  2. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  3. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  4. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  5. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  6. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
Trading Center