The currency of Canada is the Canadian dollar (CAD), written as $ or C$ to distinguish it from the U.S. dollar, and divided into 100 cents. Issued by the Bank of Canada, it is the world's sixth most traded currency and circulates as a distinctive set of polymer banknotes alongside coins nicknamed the "loonie" and "toonie." As of 2026, one U.S. dollar is worth roughly 1.36 Canadian dollars.
The Canadian Dollar at a Glance
The Canadian dollar is the only official currency in Canada and the sole legal tender for settling debts nationwide. A few essential facts capture what it is:
- Official name: Canadian dollar
- ISO code: CAD
- Symbol: $ or C$
- Subunit: the cent, 100 of which make one dollar
- Issuing authority: the Bank of Canada, the country's central bank
Because so many world currencies are also called "dollars," Canadians often refer to their money informally as the "loonie" — a nickname borrowed from the bird on the one-dollar coin that has become shorthand for the currency as a whole, especially in financial news reporting on the exchange rate.
Banknotes and Coins You'll Actually Use
Canadian banknotes come in five denominations, each a different colour to make them easy to tell apart at a glance:
- $5 — blue, featuring Prime Minister Sir Wilfrid Laurier
- $10 — purple, featuring civil rights pioneer Viola Desmond in a vertical design
- $20 — green, the most common note, long featuring Queen Elizabeth II
- $50 — red, featuring Prime Minister William Lyon Mackenzie King
- $100 — brown, featuring Prime Minister Sir Robert Borden
Coins handle the smaller values: the bronze-coloured $2 "toonie," the gold-coloured $1 "loonie," the 25-cent "quarter," the 10-cent "dime," and the 5-cent "nickel." Canada stopped minting the one-cent penny in 2012 and withdrew it from circulation, so cash purchases are now rounded to the nearest five cents. Electronic and card payments are still calculated to the exact cent, so the rounding only affects bills paid with physical money.
A Pioneer in Polymer Money
One of the most striking things about Canadian cash is its feel. In 2011 Canada became one of the first G7 nations to switch entirely to polymer banknotes — thin, flexible sheets of plastic rather than cotton-paper. The notes are far harder to counterfeit, thanks to transparent windows and metallic holographic features, and far more durable: they resist tearing, survive accidental trips through the washing machine, and last several times longer than paper bills. The current "Frontier" series celebrates Canadian innovation and achievement, and the $10 note's portrait of Viola Desmond made her the first Black Canadian and first non-royal woman to appear alone on a regularly circulating Canadian banknote.
How the Dollar Came to Be
Canada adopted a decimal dollar in 1858, deliberately aligning its money with the U.S. dollar rather than the British pound to make cross-border trade easier with its largest neighbour. For much of the twentieth century the exchange rate was managed or fixed, but since 1970 the Canadian dollar has floated freely, its value set by markets. Because Canada is a major exporter of oil, minerals, lumber, and grain, the "loonie" is widely treated as a commodity currency — its value often rises and falls alongside global oil and resource prices, which is why it can move differently from other major currencies. Today the Canadian dollar is held as a reserve currency by central banks around the world. You can learn more about the country itself in our canada country guide.
Using Money as a Visitor
Canada is among the most card-friendly countries on Earth. Contactless "tap" payments with credit cards, debit cards, and phones are accepted almost everywhere, from big-city restaurants to small-town coffee shops. Still, it helps to carry a few coins: loonies and toonies are handy for parking meters, lockers, and laundromats. U.S. dollars are occasionally accepted near the border but usually at unfavourable rates, so it is better to pay in Canadian dollars or by card. Tipping of roughly 15 to 20 percent is customary in sit-down restaurants and for many personal services. Remember that prices on shelves often exclude sales tax, which is added at the till and varies by province.
Frequently Asked Questions
What is the symbol and code for Canadian money?
The Canadian dollar uses the dollar sign, written as $ or C$ to set it apart from the U.S. dollar, and its three-letter ISO code is CAD. Each dollar is divided into 100 cents.
Is the U.S. dollar accepted in Canada?
Not officially. Some shops, hotels, and attractions near the border may take U.S. cash as a courtesy, but they often give a poor exchange rate and return change in Canadian dollars. Paying by card or in local currency is almost always cheaper.
Why is the Canadian dollar called the loonie?
The one-dollar coin introduced in 1987 shows a common loon, a waterbird, on its reverse. Canadians nicknamed it the "loonie," and the two-dollar coin that followed became the "toonie." Over time "loonie" came to stand in for the dollar itself.
Does Canada still use the penny?
No. Canada stopped producing the one-cent penny in 2012 and removed it from circulation. Cash totals are now rounded to the nearest five cents, while card and electronic payments remain exact to the cent.