The Canadian dollar (CAD) is also regarded as the “loonie”, “Haurd”,” Piastre” and a “commodity currency” with sign ($) and the code (CAD). The Canadian dollar is the monetary system in Canada, the French call it Dollar Canadien, The Canadian Dollar was initially introduced in the early 1660s when the French colonist brought coins when the first banknotes were issued in Canada in 1821 by the Montreal Bank and later became the primary method of payment, in the year 1841 the British Colony issued the Canadian Pounds. After the confederation the government decimalized the currency and introduced it in 1987 and launched in 1996. By 2011 the Central Bank of Canada had issues a new bank notes printed in polymer material.
It is sometimes recognized as Can$ or S$ which differentiates it every other currency that is dollar denominated. Owing to the image of the loon on the one-dollar coin it is sometimes regarded as Loonie by the foreign exchange traders and the analysts. The currency is the fifth most held reserve currencies in the world with the account of about two percent of the global reserve, making the currency more popular with central banks or reserved banks because of the Canada’s relative economic soundness and the government strong sovereign position with the stability of the country’s legal and political systems.The monetary system of Canada was the seventh most traded currencies in the world as many institutions and individuals trade the currency. The currency is held as a reserve currency by many central banks because it is a commodity currency as a result of the country’s exportation of raw materials.
The United States Dollars is usually recognized with US$, sign $ and the code; USD, it is mostly regarded as the American dollar or the U.S dollar.It is the official currency of the United Statesand its territories as it is the most used in the international transaction, it is the world’s primary reserve currency. Many countries take it has their official currency while some takes it has a defector currency. Aside the United States, it is also used as the sole currencies in other British Territories. The United Stated central bank is also known as the Federal Reserve Bank or The Fed. This huge monetary system is mostly converted and used in the Forex world, paired with every other currency in the world, it serves as a dominant global reserve currency, regarded as a standard currency used in the commodity market due to its direct impact on the commodity prices. The currency is the most powerful denomination backed with the largest economy in the United States of America and beyond rated as the global currency.
The quality of the Canadian dollar is usually high in correlation with the price of commodities like oil due to the fact that the Canadian economy is heavily reliant on oil, the price of oil dictates the status of the economy, which is applicable to the USD but support all commodities.
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