The Canadian Dollar and how it works

Established in 1858, the Canadian dollar (CAD), according to the ISO 4217 standard, is the official currency of Canada. The symbol for the Canadian dollar is $, with symbols such as CA$, Can$, and C$ occasionally used to differentiate the CAD from other dollar-denominated currencies.

Le monete del Canada sono prodotte dalla Royal Canadian Mint e denominate in dollari canadesi ($) e nella sottounità di dollari, i centesimi (¢). — descr1_cad

The Canadian Dollar, Coins, and Banknotes

Managed by the Bank of Canada (BOC), Canadian dollar banknotes come in five denominations: $5, $10, $20, $50, and $100. CAD is divided into 100 cents, with coins available in seven denominations: 1c, 5c, 10c, 25c, 50c, $1, and $2, minted by the Royal Canadian Mint.

CAD ranks as the world's fifth most-held reserve currency, following the US dollar (USD), the euro (EUR), the British pound sterling (GBP), and the Japanese yen (JPY). Additionally, the Canadian dollar is the sixth most traded globally, known for its status as a commodity currency due to Canada's wealth in natural resources and significant exports of raw materials.

Canadian dollar quotation against major foreign currencies

	CHF	EUR	USD	GBP	JPY	CAD	AUD
CHF	1	1.0205	1.0957	0.8773	171.2198	1.5116	1.6741
EUR	0.9724	1	1.0697	0.8559	167.0813	1.4750	1.6337
USD	0.9025	0.9254	1	0.7953	155.5875	1.3729	1.5205
GBP	1.1304	1.1583	1.2455	1	194.2346	1.7147	1.8992
JPY	0.0058	0.0060	0.0064	0.0052	1	0.0088	0.0098
CAD	0.6615	0.6779	0.7286	0.5832	113.2683	1	1.1075
AUD	0.5973	0.6121	0.6577	0.5266	102.2758	0.9030	1

Bank of Canada, 234 Wellington St. W, Ottawa, ON K1A 0G9, Canada

Reference Institution
Bank of Canada
Head Office
234 Wellington St. W, Ottawa, ON K1A 0G9, Canada
Reference interest rate
5.000 %
Last updated
07-12-2023

The BOC Policy Interest Rate, the most important interest rate for the Bank of Canada: what is it and what does it correspond to?

The Bank of Canada's Policy Interest Rate is the rate at which banks may lend money to each other overnight. It serves as a crucial tool for the Bank of Canada to manage inflation. This rate represents what financial institutions charge each other for overnight loans, facilitating the balancing of daily payments between these institutions. The Bank sets a target for this rate, which in turn influences various interest rates across the economy.

While the overnight market isn't directly accessible to the public, it significantly impacts interest rates on loans (such as mortgages) and savings accounts. During economic challenges, the Bank may decrease the rate to stimulate spending. This results in lower interest rates on loans but reduced returns on savings. Conversely, if the economy grows too rapidly, the Bank might raise the rate to limit borrowing, causing higher loan interest rates but encouraging saving. Ultimately, these actions are aimed at maintaining stable inflation around 2%. For a deeper understanding of the BOC Policy Interest Rate, visit this webpage: https://www.bankofcanada.ca/2022/04/understanding-policy-interest-rate/ .

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