What is Canada's currency?
Answer
The Canadian dollar, also called the loonie and toonie for its coins.
Explanation
The Canadian dollar is the official currency of Canada, denoted by the symbol '$' or 'CA$' to distinguish it from the United States dollar, and abbreviated as CAD in international currency markets. The dollar is divided into 100 cents and is colloquially called the 'loonie' for the one-dollar coin (introduced 1987) bearing a common loon, and the 'toonie' for the two-dollar bimetallic coin (introduced February 19, 1996) bearing a polar bear.
Canada adopted decimal currency under the Province of Canada Act of 1853, moving from the pound-shilling-pence system inherited from Britain. The Canadian dollar was first issued by the Province of Canada in 1858. Modern circulating coins are produced by the Royal Canadian Mint, founded in Ottawa in 1908, with manufacturing facilities at Ottawa (collector and bullion coinage) and Winnipeg (circulation coinage). The Mint produces coins for about 75 countries.
Canadian polymer bank notes have been issued by the Bank of Canada since the five-dollar note rolled out in November 2013. The full polymer family includes $5 (Sir Wilfrid Laurier and the Canadarm), $10 (Viola Desmond, the first non-royal woman on a regular Canadian note when introduced in 2018), $20 (King Charles III on notes issued from 2025, with the previous version showing Queen Elizabeth II and the Vimy Memorial), $50 (William Lyon Mackenzie King and a Canadian Coast Guard icebreaker), and $100 (Sir Robert Borden and Canadian medical innovations).
The Canadian dollar floats freely against other currencies. Its exchange rate tracks closely with global commodity prices, especially oil, because Canadian natural-resource exports drive about a third of Canada's GDP. The dollar reached parity with the United States dollar briefly in 2007 and 2011-2012, and has since traded between roughly 70 and 85 U.S. cents. Canada's foreign exchange reserves are managed jointly by the Bank of Canada and the Department of Finance and held primarily in U.S. dollars, gold, and Special Drawing Rights at the International Monetary Fund.
Why this matters for your test
The currency is the most concrete tool of Canadian sovereignty. Knowing the 1858 first issue, the 1987 loonie, and the 1996 toonie gives candidates a chronological set of test answers.
Source: Discover Canada: The Rights and Responsibilities of Citizenship
