Canada’s Currency Explained: What Travelers & Collectors Should Know

Canada's currency is not just a means of transaction; it's a tapestry of history, culture, and innovation. Whether you're setting foot in the Great White North for the first time or eagerly adding to your numismatic treasures, understanding the Canadian money landscape can enhance your experience.

From colorful polymer bills adorned with iconic Canadian figures to unique coinage that reflects the nation's rich heritage, this guide is your Canadian currency 101, equipping both travelers and collectors with the insights to navigate your monetary interactions with ease and appreciation.

What Currency Does Canada Use? The Canadian Dollar (CAD) 101

Canada’s official currency is the Canadian dollar (abbreviated CAD). One dollar is equal to 100 Canadian cents. That means Canadians count money as dollars and cents, much like Americans. In fact, Canadians don’t use U.S. coins or bills as legal tender – only the Canadian dollar and its coins are legal tender in Canada.

The Bank of Canada (Canada’s central bank) issues all Canadian banknotes, and the Royal Canadian Mint strikes all coins. The Government of Canada sets the laws (like the Currency Act) that back this currency. From Newfoundland to British Columbia, every Canadian province uses the same currency – the Canadian dollar (CAD).

A Brief History of the Canadian Dollar

Canada didn’t always have its own money. Early settlers and banks often used British pounds or U.S. dollars. After Confederation in 1867, the new federal government took control of the money. By 1870, the Dominion Notes Act (now the Currency Act) was passed, declaring the Canadian dollar the country’s official currency. From that point on, the Canadian dollar was defined and minted just for Canada.

Initially, the dollar’s value was tied to the British pound or to gold, but in 1931, Canada let the dollar “float,” meaning its value is set by the world market. The Bank of Canada was created in 1934 (banknotes issued starting in 1935) to manage the money supply. It issues all Canadian banknotes today. Meanwhile, the Royal Canadian Mint (opened in 1908) makes all the coins.

Together, they ensure the currency is reliable and secure. (As one example - and a fun fact - Canada’s notes now use plastic polymer instead of paper for durability.) Under Canadian law, Bank of Canada notes and Royal Canadian Mint coins are both considered “legal tender” – official Canadian money approved by the Government of Canada.

Canadian Dollar Highs & Lows: What the Time Tells Us

Like any major currency, the Canadian dollar has had its ups and downs, shaped by inflation, global demand, oil prices, and economic policy. Since it floats freely on the Forex, its value is influenced by real-world events. For example:

• In 2007, the Canadian dollar hit near parity with the US dollar, briefly trading above $1 USD, driven by booming oil exports and a strong economy.
   
• On the flip side, in early 2002, it sank to around 62 US cents, one of its lowest points in recent history.

Inflation also plays a key role in the dollar’s strength. When inflation rises in Canada, the Bank of Canada may raise interest rates to stabilize the economy, which often strengthens the dollar. Conversely, during economic downturns, lower rates can weaken the dollar.

Travelers and businesses alike feel the impact: a strong loonie means cheaper imports and travel abroad, while a weak one can boost Canadian exports but make foreign goods and travel more expensive. Whether you're timing a vacation or buying a rare coin, watching the Canadian dollar’s trends over time can save you money – or earn you more in value.

Canadian Coins in Circulation

Everyday Canadian coins come in familiar denominations, though the nicknames are uniquely Canadian. There are six circulation coins currently made: 5¢, 10¢, 25¢, 50¢, $1, and $2. Officially, they’re named “5-cent piece,” “10-cent piece,” etc., but Canadians call them by traditional nicknames.

The 5¢ piece is a nickel, the 10¢ is a dime, the 25¢ is a quarter, and the 50¢ piece (rare in circulation) is just the “50-cent piece”. Notably, the $1 coin is colloquially called the loonie (it has a loon bird on it), and the $2 coin is the toonie (a blend of “two” and “loonie”). Some other slang terms for money in Canada include "buck" for a dollar and "C-note" for a hundred-dollar bill.

Each coin’s face shows the reigning monarch on one side and a Canadian symbol on the other (e.g., the penny showed a maple leaf, the nickel a beaver, the quarter a caribou, the loonie a loon, and the toonie a polar bear). The penny (1¢) was a copper-plated steel coin with a maple leaf, but production ceased in 2012, and pennies were withdrawn by 2013. Since then, all cash transactions are rounded to the nearest nickel. In effect, the lowest-value coin in use is the nickel (5¢).

All Canadian coins are produced by the Royal Canadian Mint. They are metal discs (or bi-metallic for the toonie) used in everyday change. By law, they are legal tender for all debts, although shops will usually round to avoid pennies. Collectors will also note that every coin – even special collectible coins made by the Mint – is technically legal tender at face value (though a gold collector coin might be worth far more to a numismatist).

Canadian Bills and Paper Money

Canadian paper money (banknotes) is used for larger amounts. The standard Canadian bills in current circulation are the $5, $10, $20, $50, and $100 notes. (Older $1 and $2 bills were phased out decades ago in favor of the loonie and toonie coins.) These notes are printed on a special polymer plastic material – they’re not made of paper at all. This polymer design adds security and durability.

The Bank of Canada updates the artwork periodically; for example, the most recent series (introduced 2011–2018) features Canadian figures and scenes on colorful, see-through-plastic notes. On every banknote, you’ll see both English and French text – this bilingual design reflects that Canada’s provinces speak both languages.

For instance, the $5 bill shows Sir Wilfrid Laurier and Canada’s space robot Canadarm (and says “Banque du Canada / Bank of Canada” in both languages), while the $20 shows the Queen and commemorates World War I vets. Note designs change roughly every 10–12 years, so older notes are gradually replaced by new series.

Over time, Canada also stopped issuing very large bills: the $500 and $1,000 notes were phased out (the last $1,000 was issued in 2000). (These high-denomination notes are no longer legal tender and are primarily of interest to collectors.)

Canadian Money Value Compared to Other Currencies

Internationally, the Canadian dollar is considered a major currency. It’s often compared to the U.S. dollar (USD) and its exchange rate moves with global markets. On the foreign exchange market, one CAD has typically traded below one USD, but the exact rate fluctuates. In recent history, Canada’s dollar has usually been worth between about US$0.65 and US$1.00.

In other words, sometimes $1 CAD = $0.70 USD, sometimes it’s closer to $0.99 USD. Most Canadians and travelers keep an eye on the exchange rate vs. US Dollars, since about 75% of Canada’s trade is with the U.S. (For example, you might say “parity” when CAD and USD are near equal, or note that “our dollar is weaker” if CAD < USD.) In technical terms, Canada’s dollar has been a free-floating currency since 1931. That means its worth is set by buyers and sellers on the global foreign exchange market (the Bank of Canada rarely intervenes to peg it).

News like oil price changes or central-bank decisions can make the CAD rise or fall. Despite these swings, the Canadian dollar is seen as stable and reliable. In fact, the IMF calls it one of the world’s major reserve currencies. About 2% of official global foreign-exchange reserves are held in CAD, making it roughly the 5th-most-held reserve currency after the USD, EUR, JPY, and GB Pound.

For everyday travelers, just remember the Canadian dollar floats freely. You can check the current exchange rate anytime online. As of mid-2025, €1 is roughly C$1.50, £1 is about C$1.70, and of course C$1 = ~US$0.75 (these rates change constantly). At the time of writing:

Official Rate:
1 USD = 1.3788 CAD

On July 30th, 2025 04:07:01

If you're a frequent traveler, online shopper, or planning a big money transfer, you can always turn on our exchange rate alerts to track the Canadian dollar (or as many currencies as you'd like) and lock in the best time to convert.

What Travelers Should Know About Canadian Currency

If you’re visiting Canada, here are some practical tips: Canadian currency (coins and notes) is widely available, but it's best to plan ahead to avoid fees. You can get Canadian dollars from banks, credit unions, or licensed currency exchange platforms such as US First Exchange, with competitive rates and secure shipping. At home, many Canadian banks allow you to order foreign currency online or by phone and pick it up in a branch.

ATMs in Canada are also plentiful – using your debit or credit card to withdraw cash often gives a better rate than airport currency kiosks. (Tip: Use ATMs inside a bank during business hours to avoid skimming scams.) However, they still tend to be higher than the rates offered when you order in advance from services like US First Exchange.

• Avoid exchanging money at the airport if you can. Those airport/hotel currency desks tend to charge very high hidden fees. Even places that say “no commission” usually make money off a worse exchange rate. Banks, on the other hand, generally offer better rates. If you need emergency cash on arrival, you’ll find exchange booths at the airport, but expect to pay extra. You can also visit money-transfer locations (Western Union, MoneyGram outlets, postal services) to get Canadian dollars – these are plentiful in big cities.
   
• When paying, try to use local currency: always choose to pay in Canadian dollars, not your home currency. Some vendors (or ATMs) may offer dynamic currency conversion, letting you pay in USD or euros at the counter – but this usually means a terrible exchange rate and extra fees. Stick to “C$” pricing for payment options. Credit cards are accepted almost everywhere, and many offer competitive FX rates.
   
• However, be aware that most Canadian credit cards charge a foreign transaction fee (around 2–3%) on purchases in other currencies. Likewise, if you use an ATM not affiliated with your bank, you may incur foreign exchange fees or ATM fees. These fees (often ~3%) get added when converting currencies. So it pays to use fee-free ATMs or credit cards with no foreign fee if you have them.
   
• Another key tip: round up small change if you must pay in cash. Since the penny is gone, cash transactions are rounded to the nearest 5¢. Many Canadian businesses simply round your total to the nearest nickel. But if you’re short a nickel, they might ask you to make up the difference or let it slide. (For example, $10.02 becomes $10.00, while $10.03 goes to $10.05.) Just be aware of that convention.

Collectors and Special Currency Notes
 

Canada also produces special coins and notes for collectors.

The Royal Canadian Mint regularly issues commemorative coins (often in silver, gold, and special finishes) for anniversaries or events. Likewise, the Bank of Canada has released a few commemorative banknotes (like a $1,000 gold-plated note or a special $2 note). By law, all RCM coins (even collector editions) are still technically legal tender at face value, but of course, a 1oz gold coin might be worth hundreds to collectors.

You can redeem old or rare banknotes at face value through the Bank of Canada, but many collectors pay far more for unusual notes (for example, the discontinued $500 or prototype bills). If you have an old Canadian banknote or coin and wonder if it’s valuable, the Bank of Canada will always honor its face value, but rare pieces can fetch collector prices. (For instance, an old 1950s coin or a misprinted note might be worth much more than face value.)

For travel, these collectors’ pieces are not used for transactions. Stick to standard coins and bills for spending locally.

10 Provinces, One Currency

Whether you’re in Toronto, Vancouver, Montreal, or Regina, the scenery and language might change, but the currency remains the same. The Canadian dollar is used uniformly across all Canadian provinces and territories. There are no state or provincial currencies (unlike, say, the historical “loonie” note, which was used only in British Columbia for a while); Canada has one currency nationwide.

This means when you cross provincial lines, you won’t need to convert money. (Even in Quebec, the bills and coins look identical, just with French/English text.) Some businesses near the US border might accept small amounts of US currency as a courtesy, but that’s not official – you should always get Canadian dollars as your main currency here.

Get Your Canadian Money at US First Exchange

In sum, Canada’s currency is stable, convenient, and widely available. For travelers, carrying some cash plus a card for backup usually suffices. And for collectors, Canada offers a rich array of coins and notes to admire. Understanding the Canadian dollar – its history, denominations, and value – ensures you’ll have no surprises whether you’re paying for coffee in Toronto or hunting rare coins on a trip to Ottawa.

If you're planning a trip to Canada or looking to exchange your foreign currency for Canadian dollars, US First Exchange – your gateway to global currencies – makes the process simple, fast, and cost-effective. With competitive exchange rates and fast and secure shipping, US First Exchange ensures that you get the best value for your money, no matter the currency.

FAQ

Anything else on your mind? We've answered some of the common questions about Canadian currency people also ask.

How to Understand Canada's Currency?

Canada uses the Canadian dollar (CAD), divided into 100 Canadian cents. Coins include 5¢, 10¢, 25¢, $1 (loonie), and $2 (toonie). Bills come in $5, $10, $20, $50, and $100 denominations. All Canadian currency is bilingual and produced by the Bank of Canada and Royal Canadian Mint.

What Does a Weak Canadian Dollar Mean for Travellers?

A weaker Canadian dollar means your foreign currency goes further. For example, if you’re exchanging US dollars, you’ll get more CAD in return, making hotels, dining, and shopping in Canada more affordable.

What Is $100 US Worth in Canadian Money?

It depends on the exchange rate at the time. As a rough estimate, $100 USD is usually worth between $130–$140 CAD, but rates change daily. Check the latest rate before exchanging.

What Are the Rules for Currency Exchange in Canada?

There are no limits on how much foreign currency you can bring, but amounts over $10,000 CAD must be declared to customs. Money exchange can be done at local banks, licensed exchange services, or money transfer locations. Always compare rates and watch out for foreign exchange fees.