Canada is a country adjacent to the United States, and is a popular destination for many people who visit it when traveling to the United States. Even if you are interested in Canada, few people know the currency of Canada in detail.
About Canadian currency:
The Currency of Canada is referred to as “dollar” for banknotes and “cent” for coins, and is collectively called the Canadian dollar.
Types:
There are 5 types of banknotes and coins, including banknote denominations of $ 100, $ 50, $ 20, $ 10, $ 5, and coins of $ 2, $ 1, 25, 10 and 5 cents. Canadian banknotes are made of plastic called “polymer banknotes” and tend to be very durable.
There used to be a dime, but it was abolished in 2013. Therefore, in Canada, change is not paid in units of 5 cents or less for cash payments. Please note that if it is less than 5 cents, it may be rounded up or down.
The Canadian dollar rate is the same as any other currency and fluctuates daily. Therefore, always check the latest rate information on this site.
Features of the Canadian dollar:
Although Canada is a member of the Commonwealth of Nations, its geographical relationship is economically closely linked to the United States, and the Canadian dollar behaves like the US dollar.
Canada is also rich in energy and mineral resources such as oil, natural gas and metals, and is also blessed with forest resources.The shale revolution has been a big plus for crude oil production in Canada as well as in the United States.
Monetary policy is managed by the central bank, the Bank of Canada (BOC). Due to the high economic ties with the United States, monetary policy tends to follow the US Federal Reserve Board (FRB) a little later.
The Canadian dollar is characterized by being sensitive to crude oil prices. The Canadian dollar is likely to rise when crude oil prices are rising, and conversely, the Canadian dollar is likely to fall when crude oil prices are falling.
Canadian Dollar Exchange Trends:
Canadian dollar volatility:
Main rising factors
| International affairs | Rising crude oil prices |
| Politics | VIP’s Canadian dollar high guidance / acceptance remarks |
| Financial policy | Monetary tightening (increasing observations) |
| Economic indicators | When economic indicators such as manufacturing PMI and monthly GDP are good numbers that exceed market expectations |
| Other | Rising prices of resources such as crude oil |
Main factors of decline
| International affairs | Rising crude oil prices |
| Politics | Political instability (increasing) |
| Financial policy | Monetary easing (increasing observations) |
| Economic indicators | If economic indicators are bad numbers below market expectations |
| Other | Deterioration of fiscal balance and current account balance, stock price depreciation and market interest rate decline |
The rising and falling factors are general guidelines depending on the current environment, and the price movement may be the exact opposite depending on the degree of attention and perspective of the market.
Canada economic and trade data:
Economic data
| Nominal GDP amount | US $ 1.653 trillion (2017 IMF) |
| Real GDP growth rate | 3.1% (2017 IMF) |
| GDP per capita | US $ 45,095 (2017 IMF) |
| Budget deficit to GDP ratio | 1.09% (2017 IMF) |
| Consumer price index increase rate | 1.6% (2017 IMF) |
| Unemployment rate | 6.3% (2017 IMF) |
| Current balance (balance of payments basis) | -48,752 million US dollars (2017 IMF) |
| Trade balance (balance of payments base, goods) | -US $ 18,667 million (2017 JETRO) |
| Foreign currency reserves | US $ 86,678 million (2017 JETRO) |
Trade data
| Export value | US $ 418,857 million (JETRO 2017) |
| Import value | US $ 457,456 million (2017 JETRO) |
| Export items (upper items) | Mineral fuels, automobiles and their parts, consumer goods such as food and clothing, base metals, general machinery |
| Imported items (upper items) | Automobiles and their parts, general machinery, electrical equipment |
| Export partner country (higher country / region) | USA, China, UK, Japan, Mexico |
| Import partner country (upper country / region) | USA, China, Mexico, Germany, Japan |
Handling of US dollars in Canada:
Many people come from the United States for work or travel. As a result, the US dollars circulating in the United States are well mixed. It is very similar and therefore difficult to notice even if it is mixed.
- Some shops accept US dollars:
Whilst the US dollar is distinguished from the Canadian currency. Many shops can still accept this as some stores allow you to pay in US dollars.
- US dollars may be included in the change:
Many customers pay in US dollars, so change may be returned in US dollars. However, coins, and banknotes are often returned by accident in Canadian currency. Since coins look similar to US dollars, it may be difficult for the clerk to notice.
Summary:
The currency circulated in Canada is called the “Canadian dollar“, and the bills are called “dollars” and the coins are called “cents”. There are 5 types of banknotes and 5 types of coins.
There are several ways to convert Canadian Dollar to US Dollars. The rates are different for each method, and the fees and labor are different.
However, it is said that Canada uses credit cards more often than cash. Credit cards can be used at most facilities, so if you do not have one, we recommend that you take a credit card before traveling.