Loonie

What is the Loonie?

Loonie is a casual term for the Canadian dollar (CAD), the official currency of Canada, that originated in the forex dealer community and has thusly acquired ubiquity with foreign exchange (FX) traders.

Figuring out the Loonie

The loonie alludes to the $1 Canadian coin and gets its epithet from the image of a single crackpot on the reverse side of the coin. The front side of the coin includes a representation of Queen Elizabeth II. The loonie turned out to be such a famous epithet for the Canadian dollar that the Royal Canadian Mint reserved the name in 2006.

The loonie, presented in 1987, was a replacement for the paper rendition of the Canadian dollar (CAD). This replacement was done both as an expense saving measure and under tension from candy machine administrators and transit gatherings. Noted untamed life artist Robert-Ralph Carmichael planned the 11-sided, aureate bronze coin.

The far reaching acceptance of the $1 loonie prompted the presentation of the $2 coin in Sept. 1995. Albeit the $2 coin includes an image of a polar bear, by artist Brent Townsend, Canadians immediately started calling the coin the "toonie," a portmanteau of the words two and loonie. The Royal Canadian Mint additionally [trademarked](/brand name) the term "toonie" in 2006.

The Royal Canadian Mint, situated in Winnipeg, Manitoba, mints Canadian dollars. The Bank of Canada (BOC), situated in Ottawa, Ontario, acts as the country's central bank and deals with the currency.

The Loonie in the Global Economy

The Canadian dollar is among the main 10 most widely traded currencies in the foreign exchange markets. On account of Canada's thriving exports of energy and commodities, the loonie was among the best-performing currencies against the [U.S. dollar](/usd-US dollar) (USD) in the main decade of the new thousand years.

The loonie fell pointedly in value against the dollar in the wake of the [2008 financial crisis](/extraordinary downturn), as investors looked for the safety of American assets. It has since energized, floated by the rebound in the price of oil and different commodities. This increase was for the most part because of the strength of the Chinese government's foundation centered stimulus efforts, which saw increased demand for Canada's natural resources. Demand from Chinese firms for raw materials and oil, the two of which Canada exports in overflow, set up the Canadian economy and the value of the Canadian dollar.

The conditioning of the international oil markets starting in 2014 hurt the value of the loonie. From a pinnacle of 1.05 CAD to 1 USD, the loonie tumbled to a value of less than 70 pennies for every U.S. dollar in mid 2016. Since that time, the loonie has recuperated to some degree as it moves in lockstep with the price of oil and different commodities.

Features

• The loonie alludes to the $1 Canadian coin and gets its moniker from the image of a lone crackpot on the reverse side of the coin.
• Loonie is a conversational term for the Canadian dollar (CAD), the official currency of Canada, that originated in the forex dealer community and has in this manner acquired notoriety with foreign exchange (FX) traders.
• The loonie, presented in 1987, was a replacement for the paper variant of the Canadian dollar (CAD) and turned out to be such a well known epithet that the Royal Canadian Mint reserved it in 2006.