In the history of Canada, the national currency of the state has been dollars and reals. Currently, Canadian money is called Canadian dollars.
Canada's first money
For a long time, the country of maple leaves was a colony of the Spanish Empire. Due to the large number of colonies, the Imperials began to issue money for them. The first currency in the state was Spanish dollars (real). Do not confuse this currency with the rial, which is the currency in some countries in the Middle East.
Real Madrid had a great influence on the formation of the monetary system not only in Canada, but also in all the colonies of the Spanish Empire. Not all countries, unlike Canada, refused to use the Spanish currency. For example, now in Brazil, the real is the national currency.
Gold dollars
Unlike the first money in Canada, gold dollars were not imposed on the state from outside. In the middle of the XIX century, the government decided to introduce its own currency, which was called the golden dollar. Its value was equal to one dollar of the United States of America.
1 such dollar consisted of five shillings. Shillings have been used in many Western European countries. They came to Canada from England, where they were first minted at the beginning of the 16th century by order of King Henry VII.
New France and new money
Canada until 1763 was considered part of France. Its regions were part of the French colonies, which were called New France. These were the territories of the modern shores of the Great Lakes, as well as the Canadian provinces of Quebec and Ontario.
During this period, Canadian money was called colloquially piastres. Canadians pronounced this word "pyaso". Canadian cents in everyday life, residents called "su." So they paid tribute to the traditional names of currencies in all the colonies of France.
Types of Money in Canada: Banknotes
The period from 1813 to 1815 is considered to be special in the history of Canadian money. It was during these years that the government began issuing Canada's first paper money. These were British army notes.
Over time, certified banks decided to issue Canadian dollars. In 1866, the provincial government of Canada did the same, and eventually the power of the confederation. Over time, the old money of Canada in 1896 came out of use, which depicted the country's first prime minister.
Establishment of Bank of Canada
The main state bank was established in 1935. He became the main issuer of money throughout the country. Since its inception, he began to issue paper money in denominations of 1, 2, 5, 10, 20, 25, 50, 100 and 1000 dollars. Nine years later, it was decided to issue a ban to authorized banks to issue their own monetary units. At present, Canadian paper money is not represented by denominations of 1 and 2 dollars.
The Central Bank building is located in Ottawa. The president of the institution is Stephen Poloz. At the moment, the bank has set the following goals:
- keeping inflation low;
- management of state funds and its debt obligations;
- maintaining the purchasing power of the Canadian dollar;
- use of monetary policy;
- issue and distribution of cash;
- control over the refinancing rate;
- issuing state savings certificates;
- maintaining financial stability.
Since the creation of the Central Bank, Canada’s money has changed significantly in design. From 1937 to 1986, the Canadian government introduced new series of banknotes four times. And 6 years ago, the transition to polymer money began.
Polymer money
This type of money is a sign made of polymeric materials.They have a higher value compared to paper banknotes. But the difference in cost is offset by a longer life. Plastic money can be used up to five years.
A long period of operation of such banknotes is achieved due to the fact that the new material does not absorb water, moisture and dirt. This ability allows them to stay clean. Plastic money received new anti-counterfeit remedies that cannot be used on paper banknotes.
In addition to Canada, the entire banknote series consists only of polymer notes in several more countries:
- Australia;
- New Zealand;
- Romania;
- Papua New Guinea;
- Maldives;
- Vietnam;
- Brunei;
- Kiribati;
- Nauru
- Tuvalu;
- Singapore
Despite the fact that these states have switched to plastic banknotes, paper bills still remain legal tender.
Canada plastic money
2011 was a turning point in the history of Canadian money. The Central Bank of the state began to issue plastic money. In 2011, the Central Bank launched the first polymer bill in circulation. She became a hundred-dollar bill with the image of Robert Borden (the eighth prime minister of the state, was the head of government from 1911 to 1920).
Three months later, another polymer banknote was issued - a fifty-dollar bill, which depicts William Lyon Mackenzie King. At the end of autumn 2012, the world saw a banknote of 20 Canadian dollars, and Queen Elizabeth II of the United Kingdom of Great Britain and Northern Ireland flaunted on it.
By the end of 2013, the Central Bank of Canada issued a five-dollar bill featuring Wilfrid Laurier and a ten-dollar bill, which depicts John A. MacDonald. Now Canadian money is printed in two companies: BA International and Canadian Bank Note Company. These enterprises have signed a contract with the Canadian Central Bank. Photos of Canada's money are posted on the official web pages of the General Bank and banknote printing companies.
To achieve the absolute impossibility of creating fakes in the manufacturing process of Canadian dollars, two transparent “windows” were used. One of them is included in the general composition of the bill, and the second such a “window” is made in the form of a maple leaf. After the release of polymer banknotes, the question arose of what kind of money in Canada is the most beautiful in history.
Canadian and American dollars
Due to the fact that Canada and the United States of America are next to each other, the currency of the maple leaf country has always been influenced by the American national currency. The state itself is also closely connected with the US economy.
Since the beginning of the last century, the Canadian economy has been characterized by cyclical fluctuations. During this period, the Canadian dollar was more expensive than the American, then again cheaper. Over the past 50 years, the Canadian national currency has been more expensive than the US dollar from 1971 to 1974, as well as in 1976. From 1976 to 1986, the value of the national currency of Canada plummeted and almost reached 70 cents for 1 Canadian dollar. Then the situation improved a bit. By 1990, almost $ 90 cents was given for $ 1. Then again, the value of the currency declined.
The Canadian dollar reached a historic low in early 2001 - 62 US cents. In the past 15 years, the dollar has been unstable, but there is a tendency towards an increase in value. As of July 1, 2017 for 1 thousand Canadian dollars you can get 4 thousand 572 rubles, 2008 hryvnia 65 kopecks, 77 US dollars 19 cents or 67.64 euros.
Despite the fact that many economists consider the fixed rate more preferable for the country's economy, the Canadian government decided to introduce a floating exchange rate regime. It suggests the possibility of changing the value of the national currency based on fluctuations in the foreign exchange market.
It should be noted that there is a theory of impossible trinity, according to which the government is not able at the same time to maintain a fixed exchange rate, independent monetary policy and free rotation of capital. You need to choose two points out of three. This hypothesis was called the Mandell-Fleming Model, because its rationale was presented by two economists: Robert Mandell and Marcus Fleming.
Sending money to Canada
On the territory of this state of North America there are many citizens of the Russian Federation, Ukraine and other countries of the former USSR. In connection with these, Russians and residents of other countries who are at home are actively looking for ways to send money to Canada to their recently moved relatives or acquaintances.
There are many ways to translate. Of course, the simplest and most common option is a bank transfer. But situations may arise when the recipient is not able to withdraw the money sent to him. In such cases, you can use the services of special companies that specialize in money transfers to anywhere in the world.
The disadvantage of this method of transferring money is that the sender must know the exact details of the recipient, which is not always issued possible. In any case, there are many options for transferring funds. Each of them has its own advantages and disadvantages, but nothing is perfect. Somewhere above the commission, but the money will be transferred faster.
Often, the size of the commission depends on the amount of the transfer and the country in which it is necessary to make it. Companies may also set limits on forwarded amounts. In any case, due to the large number of companies specializing in money transfers, it will not be difficult to find the right one.