Canadian dollar
The Canadian dollar (CAD) is the unit of currency of Canada. It is divided into 100 cents.
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Canada decided to use the dollar instead of a Pound Sterling system because of the ubiquity of Spanish dollars in North America in the 18th century and early 19th century and because of the standardization of the American dollar. The Canadas, in particular, favoured the dollar - the Bank of Montreal issued bank notes in dollars in 1817 - whereas the Atlantic colonies, with stronger ties to Britain and weaker ones to the US, preferred the £.s.d. system. The Province of Canada declared that all accounts would be kept in dollars as of January 1 1858, and ordered the issue of the first official Canadian dollars in the same year. The colonies that would come together in Canadian Confederation progressively adopted a decimal system over the next few years.
Finally, the government passed the Uniform Currency Act in April 1871, tying up loose ends as to the currencies of the various provinces and replacing them with a common Canadian dollar. The gold standard was temporarily abandoned during World War I, and definitively abolished on April 10 1933.
Canadians use coins and bills (called "bank notes" officially, but not in ordinary usage) of similar denominations to American money. In fact, the historical sizes of the coins less than 50 cents are identical to those of American coins due to both nations using the Spanish dollar as the basis of their money. Quantities of American coinage circulate in Canada at par, and some Canadian coins circulate in the US as well.
Canadian coins are issued by the Royal Canadian Mint and struck at their facilities in Winnipeg. Bills are issued by the Bank of Canada and printed in Ottawa. All wording on bills appears in both of Canada's official languages, English and French. The same applies to special wording on commemorative coins. All of the standard wording on coins is identical in both languages, except for the name and title of Canada's monarch, which appear in abbreviated Latin.
Canadian coins were originally issued in bronze (1 cent) and silver (5 cents up). Gold coins for circulation were issued from 1912 to 1914 only. In 1922, copying an earlier change in the U.S., the 5-cent coin was enlarged and changed to nickel; unlike the U.S., pure nickel was used. The percentage of silver in silver coins was reduced in 1919 and 1967, and in 1968 they were all replaced by pure nickel coins of the same size or nearly so. The rising price of nickel eventually forced the 5-cent coin (commonly called the "nickel") to be changed to cupro-nickel in 1982.
At about the same time the 1-cent coin was twice made smaller, and in 1997 it was changed to copper-plated zinc. Finally, in 2000 all coins below $1 were changed to steel with copper or nickel plating. Unfortunately, there have been some problems with compatibility between the new coins and coin-operated devices like vending machines and public telephones.
The most significant recent development in Canadian currency was the withdrawal of the $1 and $2 bills in 1989 and 1996, respectively, and their replacement with coins of new design. The new $1 coin, first issued in 1987, is colloquially called the "loonie," for the loon on their back, and the name is frequently applied to the currency unit as well. It is made of nickel plated with "aureate bronze". The $2 coin, carrying a polar bear, is called by analogy the "toonie" (also spelled "twonie", making the etymology clearer), and has two sections differing in colour. Unlike several American attempts to introduce a dollar coin, the new coins were quickly accepted by the public, owing largely to the fact that the mint and government made it a "cold turkey" switch.
Also, the Bank of Canada recently introduced a new series of bills, starting with the new $10 in 2001, the new $5 in 2002, and the new $100 bill in 2004; the new $20 and $50 are expected by year's end. Called "Canadian Journey", this series will feature elements of Canadian heritage and excerpts from Canadian literature. The $100 introduces watermark security features for the first time on Canadian currency. It also boasts significantly expanded holographic security features.
History
Canadian Currency
| Canadian Coins | |||||||
| Value | Common name | Composition | Obverse | Reverse | Mass | Diameter | Thickness |
| $0.01 | penny (Fr. cent noir) | 94% steel, 1.5% nickel, 4.5% copper plating | The Queen | Maple leaf | 2.35 g | 19.05 mm | 1.45 mm |
| $0.05 | nickel | 94.5% steel, 3.5% copper, 2% nickel plating | The Queen | Beaver | 3.95 g | 21.2 mm | 1.76 mm |
| $0.10 | dime | 92% steel, 5.5% copper, 2.5% nickel plating | The Queen | The Bluenose (a famous schooner) | 1.75 g | 18.03 mm | 1.22 mm |
| $0.25 | quarter | 94% steel, 3.8% copper, 2.2% nickel plating | The Queen | Caribou | 4.4 g | 23.88 mm | 1.58 mm |
| $0.50 | 50-cent piece† | 93.15% steel, 4.75% copper, 2.1% nickel plating | The Queen | Canadian coat of arms | 6.9 g | 27,13 mm | 1.95 mm |
| $1.00 | loonie (Fr. huard) | 91.5% nickel 8.5% bronze plating | The Queen | Common loon | 7 g | 26.5 mm | 1.75 mm |
| $2.00 | toonie or twonie | Rim - 99% nickel; core - 92% copper, 6% aluminum, 2% nickel | The Queen | Polar bear | 7.3 g | 28 mm | 1.8 mm |
† Not in general circulation.