Will You Find An Improved Deal When You Buy Canadian Dollars With FairFX?
The Canadian Dollar: A History
The CAD, another word for the Canadian dollar, was made in the Bank of Montreal and went into circulation in 1817. With the Spanish dollar being the most common form of currency at the time in North America, the CAD was made official in 1858 replacing the pound system in place at the time. The US dollar was also a great influence for that decision, based on the proximity to and interaction with the country. The bills and coins used by Canada were made to appear very similar to those in use within the US, though each featured different landmarks and historical figures from those known in the US. The coins are valued at 1c, 5c, 10c, and 25c. Canadian change is intended to be the same size and out of the same metals as US change, even though it is not usually taken as a way of payment there.
A Rundown of the Conversion Rates: British Pound Sterling to Canadian Dollars
Often, the Canadian Dollar does not fare as well as the British pound sterling, which is related to how each type of currency is backed. While the Canadian dollar is supported by gold, Sterling is commonly a more stable method of supporting currency. Due to the similarities shared between the CAD and the USD, there has often been a strong correlation between the exchange rate for the two currencies. 1948 proved to be one of the worst times for the CAD as the conversion rate remained .25 GBP to CAD. Since 1948, the Canadian dollar has not hit a point that low, but has instead stayed between .33 and .50 GBP to CAD. In 1984, the CAD reached a high point at .58 GBP to CAD. The rates were looking to be the best between the end of the 70s to the start of the 90s, since then the rates dropping back down.
Prior Exchange Rates Between The CAD & GBP
The exchange rate for the Canadian dollar has been pretty secure for the last decade, hovering around .44 GBP to CAD. Market analysts see that the current trends for the Canadian dollar are somewhat reminiscent of the trends shown by the CAD in the early ’70s when the CAD entered one of its most valuable periods in history, though there is some disagreement about which way the CAD is really heading. The greatest time for the Canadian dollar in the past several years was in 2006 while the rate was up to .48 GBP to CAD. The worst modern rate came in 1999 when the dollar exchanged for .42 GBP to CAD. Looking at the economic condition of the country now, the exchange rates are calculated to continue on the steady path or begin to slump in the coming years.
