The Canadian dollar is the currency of Canada. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies. It is divided into 100 cents.
Unlike other currencies in the Bretton Woods system, whose values were fixed, the Canadian dollar was allowed to float from 1950 to 1962. Between 1952 to 1960, the Canadian dollar traded at a slight premium over the U.S. dollar, reaching a high of US$1.0614 on August 20, 1957. The Canadian dollar fell considerably after 1960, and this contributed to Prime Minister John Diefenbaker's defeat in the 1963 election. The Canadian dollar returned to a fixed exchange rate regime in 1962 when its value was set at US$0.925, where it remained until 1970. As an inflation-fighting measure, the Canadian dollar was allowed to float in 1970, allowing its value to fluctuate dependent on supply and demand on international money markets.
The Bank of Canada has no specific target value for the Canadian dollar and has not officially intervened in foreign exchange markets since 1998. The Bank's official position is that market conditions should determine the worth of the Canadian dollar.
On world markets, the Canadian dollar has historically tended to move in tandem with the U.S. dollar. In more recent years, dramatic fluctuations in the value of the Canadian dollar have tended to correlate with shifts in oil prices, reflecting the dollar's status as a petrocurrency owing to Canada's significant oil exports.
A number of central banks (and commercial banks) keep Canadian dollars as a reserve currency. The Canadian dollar is considered to be a benchmark currency. In the economy of the Americas the Canadian dollar plays a similar role to that which the Australian dollar (AUD) does in the Asia-Pacific region. The Canadian dollar (as a regional reserve currency for banking) has been an important part of the British, French and Dutch Caribbean state's economies and finance systems since the 1950s. The Canadian dollar is held by many central banks in Central America and South America as well. The holding of the Canadian dollar in Latin America is done so because of each nation's nationally important issues of remittances and international trade.
The Canadian dollar is globally ranked 6th in value held as reserves.
Country-specific notes for event trading
1. Ivey PMI: this event is only tradable when it is released before the employment numbers
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