What Do Canadians Call Their Money? Official Terms and Nicknames

Canada’s currency is known by both its official name and a variety of nicknames rooted in history and culture. These informal terms are widely recognized and commonly used in daily life.

Official Currency Terminology

The Canadian dollar (CAD) is represented by the “$” symbol, though “C$” is sometimes used internationally to distinguish it from other dollar-based currencies. The Bank of Canada issues and regulates the currency to maintain stability.

Banknotes come in denominations of $5, $10, $20, $50, and $100, each with a distinct color and design reflecting Canada’s history and culture. Since 2011, polymer notes have replaced paper bills to enhance durability and security. These notes feature transparent windows, raised ink, and holographic elements to prevent counterfeiting. The current Frontier Series includes portraits of notable Canadians, such as Sir Wilfrid Laurier on the $5 bill and Viola Desmond on the $10 bill.

Coins, produced by the Royal Canadian Mint, are available in 5-cent, 10-cent, 25-cent, 50-cent, $1, and $2 denominations. Though the 50-cent coin remains legal tender, it is rarely used. Canadian coins traditionally feature Queen Elizabeth II, with future designs transitioning to King Charles III following her passing in 2022. The reverse sides of coins display national symbols, including the beaver on the nickel and the caribou on the quarter.

Nicknames

Canadians often use informal names for their currency, many originating from the design or history of the coins and bills. These nicknames are an integral part of the country’s financial vocabulary.

Loonie

The one-dollar coin is called the “loonie” due to the image of a common loon on its reverse. Introduced in 1987, it replaced the one-dollar banknote to reduce costs and improve durability. Made of a gold-colored nickel-brass alloy, the coin has an 11-sided shape.

Beyond daily transactions, the loonie is frequently referenced in economic discussions, particularly in foreign exchange markets. Analysts use the term when discussing the Canadian dollar’s value, such as “the loonie strengthened against the U.S. dollar.” The coin has also played a role in Canadian sports traditions, including the “lucky loonie” superstition, where a loonie is placed under the ice at international hockey tournaments for good luck.

Toonie

The two-dollar coin, introduced in 1996, is called the “toonie,” a blend of “two” and “loonie.” Initially an informal term, it quickly gained widespread acceptance. It replaced the two-dollar bill for the same cost-saving reasons as the loonie. The toonie has a bimetallic design, with a nickel outer ring and an aluminum-bronze inner core.

The reverse originally featured a polar bear, symbolizing Canada’s northern wildlife. Over the years, special editions have marked historical events, such as the 2017 glow-in-the-dark toonie celebrating Canada’s 150th anniversary. Its durability and distinct design make it practical for vending machines and transit systems.

The Buck

The term “buck” is a common slang word for a dollar in both Canada and the United States. It dates back to the 18th century, when deerskins, or “bucks,” were used as trade currency among settlers and Indigenous peoples. Over time, the term became synonymous with money.

In Canada, “buck” is widely used in casual speech, such as “five bucks” for five dollars. It also appears in retail advertising, where businesses use phrases like “save a few bucks” to attract customers. While not used in official financial documents, it is universally understood.

Symbol and Exchange Code

The Canadian dollar is represented by the “$” symbol, but “C$” is often used in financial markets to differentiate it from other dollar-based currencies. This distinction is particularly important in transactions involving the U.S. dollar (USD) or Australian dollar (AUD).

On foreign exchange markets, the Canadian dollar is identified by the ISO 4217 currency code “CAD.” This code is used in banking, trading platforms, and financial reports to standardize currency representation. The CAD is one of the most traded currencies globally, frequently paired with major currencies like the USD, euro (EUR), and British pound (GBP). The USD/CAD exchange rate is closely monitored due to the strong economic ties between Canada and the United States.

The value of the CAD fluctuates based on factors such as interest rates set by the Bank of Canada, inflation, and trade balances. Commodity prices, particularly oil, also influence its value, as Canada is a major crude oil exporter. When oil prices rise, the CAD often strengthens; when they fall, it tends to weaken. This link to natural resource prices classifies the Canadian dollar as a “commodity currency.”