Canadian Dollar_flag

Canadian Dollar

The Canadian Dollar, represented as CAD, is the official currency of Canada. It's managed and issued by the Bank of Canada, the nation's central bank.

The Canadian Dollar was first introduced in 1858 to facilitate trade with the United States and the United Kingdom. It replaced the Canadian pound at a rate of 4 Canadian Dollars to 1 Canadian pound. Since 1970, the Canadian dollar has been a floating currency, meaning its value is set by the foreign exchange market.



Exchange rate regime:Floating

Did you know?

Canada's Monetary Policy


The Bank of Canada's monetary policy aims to maintain inflation at a medium-term target of 2%. It uses various tools to achieve this, such as adjusting the target for the overnight rate, which influences other interest rates and affects people's spending decisions.


The Bank of Canada also uses a system of inflation-control targeting, where it sets a specific range for the inflation rate. If the inflation rate moves out of this range, the Bank will adjust its monetary policy to bring it back within the target range.


The Canadian Dollar is divided into 100 cents. Canadian coins come in denominations of 5, 10, 25 cents, and 1 and 2 dollars, commonly known as a loonie and a toonie, respectively. Banknotes are issued in denominations of 5, 10, 20, 50, and 100 dollars.


Canadian banknotes feature the portrait of the reigning monarch on the front and Canadian cultural symbols and landscapes on the back. Each denomination has a distinct color, and the notes incorporate a variety of security features.


The CAD is considered a commodity currency due to Canada's vast natural resources, particularly oil. As a result, its value often fluctuates with commodity prices, especially oil.


Economists often monitor the CAD for signs of economic health in the resource sector. As Canada is the U.S.'s largest trading partner, the CAD-USD exchange rate is also of significant interest.


The Bank of Canada regulates the CAD, overseeing monetary policy, promoting a safe, sound financial system, and providing secure, quality banknotes. Financial institutions in Canada must comply with the Bank of Canada's regulatory requirements and the regulations set by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), including robust Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

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Important information

Payments in CAD to Canada

Payment instructions must contain:


Payment instructions should contain the beneficiary's IBAN, name, and address.


Payment Processing Time

The time taken for a payment to reach the recipient's bank account can vary. Domestic transfers within Canada are typically processed quickly, while international transfers may take a few business days. Consider the processing time when planning your payment to ensure timely delivery. The iBanFirst Payment Tracker can help you track those payments, and ensure a smooth and efficient payment experience.


Fees and Charges

Banks and financial institutions may apply fees and charges when processing international payments. These fees can vary, so it is advisable to check with your bank to understand the charges associated with your transaction. Check out iBanFirst’s Savings Calculator to estimate how much you could save on your next international payment.

Keep in mind

Public holidays

When a holiday falls on a weekend, the next business day becomes a holiday



New Year's Day



Canada Day



Remembrance Day






Boxing Day

Good Friday


Victoria/Patriot’s Day

Last Monday preceding May 25

Labour Day

First Monday in September


Second Monday in October


Currency Reference Guide

Get the full currency reference guide, updated by the iBanFirst currency market experts.

iBanFirst S.A. is duly authorised and regulated by the National Bank of Belgium (under CBE number 0849.872.824) as a payment institution. It is a direct member of the SWIFT network and is certified to make payments throughout the SEPA zone. As a payment institution, iBanFirst S.A. only offers hedging solutions (forward, flexible forward and dynamic forward) connected to underlying payment transactions. iBanFirst S.A. does not offer options or any other financial instruments for investment or speculative purposes.