‘Loonie’ is the nickname for the Canadian Dollar (CAD) that first originated among forex traders before becoming common in the public at large. The Loonie is the seventh most traded currency in the world and the sixth most held currency in foreign exchange reserves. The Loonie is a Dollar-based currency, but it is sometimes denoted with ‘C$’ to differentiate it from others like the United States Dollar. The Canadian currency has had a free-floating rate since 1970 but holds a relatively lower value than the U.S. Dollar.
Why is the Canadian Dollar called a Loonie?
The Loonie got its name from the loon bird featured on one side of Canada’s $1 coin, opposite of Queen Elizabeth II. Although not the official bird of Canada, the image of a loon was proposed by wildlife artist Robert-Ralph Carmichael during the coin’s design in 1987.