🇨🇦 Canada
History of the Canadian Dollar
The Canadian dollar (CAD) is the official currency of Canada. It was introduced in 1858 as a replacement for the colonial currencies that were in use in the British North American provinces. The CAD was initially pegged to the US dollar, but this peg was abandoned in 1950. Throughout the 20th century, the value of the CAD fluctuated relative to other major currencies, with periods of both appreciation and depreciation.
In the 1970s, the CAD experienced a period of rapid inflation, leading the Canadian government to float the currency in 1970. This allowed the CAD to be valued based on market forces, rather than being pegged to a specific currency. The value of the CAD rose relative to the US dollar in the late 1970s and early 1980s, but then fell in the late 1980s and early 1990s.
In recent decades, the CAD has been a relatively stable currency, with a value that has fluctuated only moderately relative to other major currencies. Despite this stability, the CAD has faced challenges in recent years, such as the global financial crisis of 2008 and the oil price collapse of 2014, which had a significant impact on the Canadian economy.
Nevertheless, the CAD remains a widely used currency and an important component of the global financial system.
Commonly Traded Reverse Currency Pairs with the CAD
Reverse currency pairs with the CAD (Canadian Dollar) are commonly traded in the forex market (foreign exchange market). These currency pairs involve the Canadian Dollar as either the base or the quote currency.
The Canadian Dollar is the currency of Canada and the fifth most traded currency in the world. The most common reverse currency pairs with the CAD are USD/CAD, EUR/CAD, GBP/CAD, JPY/CAD, AUD/CAD, NZD/CAD, and CHF/CAD.
The USD/CAD is the most widely traded currency pair involving the CAD. This pair is often referred to as the “Loonie”, as the Canadian Dollar is informally known as the Loonie. This pair is heavily influenced by the oil markets and the interest rate policies of the Bank of Canada and the Federal Reserve.
The EUR/CAD is a popular currency pair that is highly sensitive to the economic conditions in Europe and Canada. This pair is also heavily influenced by the oil markets, as well as the interest rate policies of the European Central Bank and the Bank of Canada.
The GBP/CAD is a popular cross involving the CAD. This pair is sensitive to economic conditions in the UK and Canada, as well as the interest rate policies of the Bank of England and the Bank of Canada.
The JPY/CAD is a cross involving the CAD and the Japanese Yen. This pair is sensitive to economic conditions in Japan and Canada, as well as the interest rate policies of the Bank of Japan and the Bank of Canada.
The AUD/CAD is a cross involving the CAD and the Australian Dollar. This pair is sensitive to economic conditions in Australia and Canada, as well as the interest rate policies of the Reserve Bank of Australia and the Bank of Canada.
The NZD/CAD is a cross involving the CAD and the New Zealand Dollar. This pair is sensitive to economic conditions in New Zealand and Canada, as well as the interest rate policies of the Reserve Bank of New Zealand and the Bank of Canada.
The CHF/CAD is a cross involving the CAD and the Swiss Franc. This pair is sensitive to economic conditions in Switzerland and Canada, as well as the interest rate policies of the Swiss National Bank and the Bank of Canada.
In conclusion, reverse currency pairs with the CAD are commonly traded in the forex market. These currency pairs include USD/CAD, EUR/CAD, GBP/CAD, JPY/CAD, AUD/CAD, NZD/CAD, and CHF/CAD. These pairs are heavily influenced by the economic conditions and interest rate policies of the respective countries involved, as well as oil markets.
FAQ
The Canadian dollar is the official currency of Canada. It is also known as the loonie, after the common loon that appears on the one–dollar coin.
The current exchange rate between the US dollar and the Canadian dollar is 1.34, as of November 2020.
The Canadian dollar is one of the top 10 most traded currencies in the world. It is also the sixth most traded currency in terms of value.
You can use an online currency converter to convert Canadian dollars into other currencies. Many banks, online services, and money transfer companies offer this service.
