Historical Value Of Canadian Dollar Vs Us Dollar
The Canadian dollar is the official currency of Canada and is abbreviated as CAD or C$. The US dollar is the official currency of the United States of America and is abbreviated as USD or $.
Early History
The history of the Canadian dollar dates back to 1858 when it was introduced as a legal tender. At that time, the value of the Canadian dollar was pegged to the US dollar at par, i.e., one Canadian dollar was equal to one US dollar.
However, in 1867, Canada became a self-governing dominion within the British Empire, and the Canadian dollar was no longer pegged to the US dollar. Instead, it was pegged to the British pound, which was the dominant currency of the time.
20th Century
During the early part of the 20th century, the Canadian dollar fluctuated in value compared to the US dollar due to various economic factors, including inflation and changes in the global economy.
However, after the Second World War, the Canadian dollar was pegged to the US dollar at a fixed rate of C$1.10 to US$1. This fixed exchange rate lasted until 1970 when the Canadian government allowed its currency to float freely against other major currencies.
Recent History
Since the 1970s, the Canadian dollar has fluctuated in value compared to the US dollar due to various economic factors, including inflation, changes in the global economy, and fluctuations in commodity prices.
For example, during the early 2000s, the Canadian dollar was worth less than US$0.65 due to a weak Canadian economy and low commodity prices. However, by 2007, the Canadian dollar had risen to a value of US$1.10 due to a strong Canadian economy and high commodity prices.
Current Value
As of August 2021, the Canadian dollar is worth approximately US$0.79. The value of the Canadian dollar compared to the US dollar can fluctuate on a daily basis due to various economic factors, including interest rates, inflation, and changes in the global economy.
Conclusion
The historical value of the Canadian dollar compared to the US dollar has fluctuated over time due to various economic factors. However, in recent years, the Canadian dollar has held a relatively stable value compared to the US dollar, with fluctuations occurring due to changes in the global economy and commodity prices.