Canada is an extremely popular tourist destination because of its picturesque landscape and diverse cultures. Tourists enjoy experiencing the Northern Lights in Yukon and seeing the country's most iconic railways. Along with being a top-rated tourist destination, Canada is also popular among job seekers.
Have you added Canada to your travelling bucket list? Then you will need to use the local currency while visiting. Read on to know what currency is used in Canada and how you can buy some.
The Canadian Dollar (CAD) is Canada's official currency. It was introduced in 1858. Before this, Canada used French coins while it was a French colony and Pound Sterling while the country was a British colony. As the colonies moved away from British pound, they replaced previous currencies with those linked to the USD. Formation of the Canadian Confederation occurred in 1867 and CAD was established as currency.
During 1871, use of the Canadian Dollar was made mandatory, replacing all earlier currencies.
The Canadian Dollar is divided into 100 cents. Its subunits are Cent, Quarter, Dime, and Nickel, and CAD is its official code.
The Bank of Canada distributes banknotes and coins. Initially, various chartered banks had the authority to issue a legal tender in Canada. However, the Canadian government gradually revoked this authority. So by the mid- 20th century, the Bank of Canada was the only issuer of paper currency.
Interestingly, the Canadian Dollar is popularly known as 'Commodity Currency' due to the country's rich natural resources and raw material exports. Moreover, throughout its history, Canadians have used a strange collection of items as currency. These included wampum and beaver pelts by the indigenous tribes, as well as playing cards to cover a severe coin shortage during French colonial rule.
Let us take a look at some other interesting details about CAD.
The Canadian Dollar banknotes are primarily issued in five denominations. These are $5, $10, $20, $50 and $100. On the other hand, the Royal Mint issues coins in seven denominations: 1c, 5c, 10c, 25c, 50c, $1 and $2.
The Canadian Dollar is officially legal tender only in Canada. Unofficially, the self-governing territorial collectivity of Saint Pierre and Miquelon also accepts CAD. Some shops in northern USA may accept Canadian dollars, especially those located near the border. Moreover, it is the fifth held most reserve currency globally and sixth most traded currency worldwide.
You can buy Canadian Dollars from a bank or bureau de change. However, these currency exchange institutions often levy hidden charges without communicating to their customers.
Moreover, daily exchange rate remains fixed. So you can end up paying more than what you expected. Not only that, you usually have to visit these institutions physically. Instead, you can turn to an online currency exchange organisation, although it is best to conduct market research before choosing an online exchange provider.
On the other hand, The Currency Club maintains complete transparency and offers access to live interbank rates. Therefore, you can check everything related to a transaction before buying travel money from us.
Furthermore, our exchange rates are highly competitive and entirely devoid of additional or hidden charges.
Your expenditure can vary according to the type of trip you are taking. For example, if you are going on a vacation, you will usually spend the most on sightseeing. These can cost you around 27 CAD per person.
However, the typical costs you need to be aware of are those of accommodation, transportation and food.
Underlined below are the expenses a tourist has to bear in Canada:
Taxi: A taxi is a convenient public transportation while travelling in Canada. The base fare is approximately 24 CAD per person. On the other hand, a sky train will be around 8.75 CAD.
Meal for two: Dining out at an average restaurant will cost around 90-100 CAD is the cost of food for two people, and breakfast is cheaper than other meals.
Hotel room: The average cost for two people sharing a room is around 204 CAD in a standard budget hotel.
Yes, there are several ATMs available in Canada. However, there is a high possibility that most of these will not accept foreign-issued cards. So you must check with your financial institution if your credit or debit card will work there.
Moreover, if you use ATMs in Canada, there will be an added transactional fee while withdrawing money. Hence it is advisable to buy travel money beforehand to avoid this.
Summary
Now that you know what currency is used in Canada, you can start planning for your trip. And for buying travel money, it is better to plan and do market research before making any decision. The Currency Club makes your work easier as you can check interbank rates, exchange rates and other relevant details on our website.
We have made every effort to ensure that the information published here is correct and accurate, however you should check and confirm the latest exchange rates with The Currency Club directly prior to making a decision. The information published is general and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available
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