History of the Canadian Dollar

Canada is geographically flanked by the Atlantic Ocean, Pacific Ocean and Arctic Ocean. It shares the longest common border with the United States of America. The diversity in flora, fauna and landscape within the territory, now acknowledged as Canada, has been explored incessantly by aboriginal people, the British and French explorers. After the ceding of its territories by France in 1763 and the Seven Years' War, the country was formed by the union of three North American British colonies in 1867. The federal dominion was highlighted first within the Statute of Westminster in 1931 and finally in 1982, within the dictates of the Canada Act. Today, Canada functions as a federation of three territories and ten provinces. This parliamentary democracy, also adheres to the regulations of a constitutional monarchy, headed by Queen Elizabeth II. Canada is now recognized as a technologically highly advanced economy that efficiently capitalizes on its industrialization, abundant supply of natural resources and complex trade relationships across the continents. The Canadian Dollar (C$) is an important world-currency and is currently acknowledged as the 7th most traded currency across the globe.

A Chronicle of the Canadian Dollar

The Canadian Dollar is recognized in the fiscal world by the symbol CAD or simply C$. The gold dollar was first adopted in 1841, when the Province of Canada declared a 'pound' currency equal to one-tenth of the then popular gold Eagle coin. The evaluation then was with 10 U.S. dollars and 5 shillings in local currency. The independent C$ was first issued on January 1, 1858. It was pegged at par with the U.S. Dollar. Over the next few years, the rates were characterized by fluctuations in the adopted decimal systems across the colonies that united under the Canadian Confederation. While British Columbia, New Brunswick and Prince Edward Island adopted a currency dollar-equivalent to the independent Canadian dollar, Newfoundland and Nova Scotia retained their individual currencies till 1895 and 1871, respectively. Till 1949, there were seven independent currencies, that floated the Canadian fiscal arenas. These included the Canadian pound, Canadian dollar, British Columbia dollar, Newfoundland dollar, New Brunswick dollar, Nova Scotian dollar and the Prince Edward Island dollar. In April 1871, the federal Parliament passed the Uniform Currency Act and eventually replaced independent currencies within a common C$.

The gold standard that was applicable to the C$ till the First World War and was eventually abolished in 1933. All through the Second World War, it witnessed an evaluation at 1.1 C $ = 1 U.S. $. Parity was achieved only in 1946. When the sterling was devalued in 1949, it returned to the peg applicable during the Second World War. All through 1950, the Canadian Government allowed the dollar to float, before assessing and determining a fixed exchange rate in 1962. The C$ was then pegged at 0.925 U.S. dollars. The fiscal arena also witnessed the use of bronze coins between 1858 and 1859. Between 1908 and 1919, sovereign $5 and $10 coins were issued. In 1942, the tombac replaced nickel, as a war-time measure. Between 1944 and 1945, chromium-plated steel coins were used before the reuse of nickel between 1951 and 1954. Other Canadian coin variants seen throughout the history of Canadian currency include the silver Voyageur dollar, dodecagonal, bimetallic and the cupro-nickel.