The Canadian dollar is the currency of Canada. Managed and overseen by the Bank of Canada, it is frequently traded as part of pairs such as USD/CAD, GBP/CAD and EUR/CAD.
Although not as popular as its US counterpart, the Canadian dollar is still one of the most commonly traded currencies in forex and is often known as a ‘commodity currency’ due to the correlation between its value and commodity prices.
It was first used in 1858 as a replacement for the Canadian pound, and the Canadian dollar has since become a benchmark currency that is kept in reserve by countries across the world. The nickname ‘Loonie’ is used in trading to refer to the currency, with the deriving from the aquatic bird ‘the loon’ that is featured on the nation’s $1 coins.
What is the symbol for the Canadian dollar?
The symbol for the Canadian dollar is $. However, C$ or CAN$ can also be used to distinguish between the US dollar and other dollar currencies that use the $ symbol. One Canadian dollar is made up of 100 cents, and the abbreviation ‘CAD’ is used to denote the Canadian Dollar when shown in forex currency pairs.