The Canadian dollar is the present currency of Canada. It is abbreviated with a dollar sign $ however it is distinguished from other dollars and a C is added: C$. It is most popularly known by the name of the “Loonie.” The Canadian dollar is economically considered one of the most powerful currencies in the world. Its economic position can be pondered on by looking that it’s ranked as the world’s 7th most traded currency. The first Canadian coinage was authorized and executed in 1858 which was the Canadian dollar that is still being used now(the Canadian pound was used before that in 1841-1858).The Canadian dollar is being used as a reserve currency in many European countries and in the USA.
The Canadian dollar suffered a great downfall during the 1990s but since then its value against the other major currencies have been rising high. The basic reason behind this rising price is attributed to the strong export products of Canada to other countries. This high rising value of the Canadian dollar can be seen as it was called the “Canadian Newsmaker of the Year” in the 2007 Time magazine Canadian edition. Looking upon the economy of Canada, you will see it is the 10th largest in the world which is the reason Canada has been considered amongst the wealthiest nations in the world.
The economy of a country has a direct impact upon its currency and the reason behind the high rise of the CAD is because of Canada’s strong economy. The current status of 1 CAD is approximately 0.97 USD. Thus the current position of the Canadian dollar is very strong in the Global economic market mostly owing to its strong economic yield. Now, considering the future aspects of the Canadian dollar one thing should be kept in mind, predicting the future is a really tricky thing to do. The long term as well as short term prospects of the economic growth rate of the country should be considered while predicting the future of its currency. As in the case of the Canadian dollar it has been mentioned that a strong economy and its stable growth rate can somehow ensure a prospering future. It has been predicted that its current momentum will keep increasing, as the stocks remain high in both the US and Canada. As the crude oil prices rise, the dollar itself rises to a higher level. Predictions are being made that during the coming years the Canadian dollar will come up as a much better performing currency based on a broader theme. The currency is heading towards record gains in the near future. After reading such positive things about the Canadian dollar and its day by day rising value it is a centre of attention for most of the investors from around the world. The foreign exchange trading commonly known as the Forex is an increasing option for interested people. The investors are treating the Loonie as a high-yield growth currency and that’s why its bidding is increasing. The basic reason behind this is that Canada’s economy itself is very stable and considered mature for investment purposes. The Canadian GDP(Gross Domestic Product) has exceeded the analyst’s predictions along with a low level of inflation. So the inventors found it quite safe to invest in the Canadian Dollar.
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