Here are some Canadian dollar facts you should know, especially if you plan to engage in Forex trading in the future. Canada’s currency has a rich history and has gone a lot of changes as the years go by. The Canadian dollar is Canada’s official currency. Canada’s dollar is the fifth most help reserved currency in the world. The currency is sometimes referred to as the Lonnie by traders and analysts and is abbreviated as $ in the market. Like in the United States, the Canadian dollar is called “buck” as its slang term.
Canadian Dollar Facts no.1: Banknotes
The first paper money issued in Canada that was denominated in bills was British Army bills, which were issued between 1813 and 1815. There were several changes to the notes have occurred since the first issuance of the bank notes. The latest change in the banknotes was in 2011 this was when the design was printed on polymer substrate instead of cotton fiber which makes the bills more durable.
All banknotes are currently printer by the Ottawa-Based Canadian Bank Note Company which is contracted by the Bank of Canada.
Canadian Dollar Fact no.2: Loonie in the Market
76.7% of Canada’s exports go to the U.S. and 53.3% of imports into Canada come from the U.S. So one of the most important Canadian dollar facts is that the main focus of the currency is mainly to gage its worth against the U.S. dollar. This is because most of its exports are contracted to the states. A rise in the value of the dollar increases the price of Canadian exports to the U.S. there are advantages to a rising dollar, if that happens, it will be cheaper for Canadian industries to imports foreign materials good and Businesses.
The Central Bank of Canada currently has no specific target value for the Canadian Dollar, and it hasn’t intervened in foreign exchange markets since 1998.