Editing Canadian dollar (section)

==Value==
[[File:CAD-USD v2.svg|thumb|right|upright=1.6|The cost of one [[United States dollar]] in Canadian dollars from 1990]]
[[File:CAD-EUR 1999-.svg|thumb|right|upright=1.6|The cost of one [[Euro]] in Canadian dollars from 1999]]
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Since 76.7% of Canada's exports go to the U.S., and 53.3% of imports into Canada come from the U.S.,<ref>{{cite web |author=Central Intelligence Agency |author-link=Central Intelligence Agency |url=https://www.cia.gov/the-world-factbook/countries/canada/ |title=The World Factbook&nbsp;– Canada |access-date=June 16, 2016 |archive-date=September 22, 2021 |archive-url=https://web.archive.org/web/20210922212931/https://www.cia.gov/the-world-factbook/countries/canada/ |url-status=live }}</ref> Canadians are interested in the value of their currency mainly against the U.S. dollar. Although domestic concerns arise when the dollar trades much lower than its U.S. counterpart, there is also concern among exporters when the dollar appreciates quickly. A rise in the value of the dollar increases the price of Canadian exports to the U.S. On the other hand, there are advantages to a rising dollar, in that it is cheaper for Canadian industries to purchase foreign material and businesses.

The Bank of Canada has no target value for the Canadian dollar and has not intervened in [[foreign exchange market]]s since 1998.<ref>{{Cite web|title=Understanding exchange rates|url=https://www.bankofcanada.ca/2020/08/understanding-exchange-rates/|url-status=live|archive-url=https://web.archive.org/web/20200830204535/https://www.bankofcanada.ca/2020/08/understanding-exchange-rates/|archive-date=August 30, 2020|access-date=October 8, 2020|website=www.bankofcanada.ca|language=en-CA}}</ref> The Bank's official position is that market conditions should determine the worth of the Canadian dollar, although it occasionally makes minor attempts to influence its value.

On world markets, the Canadian dollar historically tended to move in tandem with the U.S. dollar.<ref>{{cite news |title=XE Currency Charts: USD to CAD |url=https://www.xe.com/currencycharts/?from=USD&to=CAD&view=10Y |access-date=February 11, 2019 |website=XE.com |archive-date=December 5, 2017 |archive-url=https://web.archive.org/web/20171205024728/http://www.xe.com/currencycharts/?from=USD&to=CAD&view=10Y |url-status=live }}</ref> An apparently rising Canadian dollar (against the U.S. dollar) was decreasing against other international currencies; however, during the rise of the Canadian dollar between 2002 and 2013, it gained value against the U.S. dollar as well as other international currencies. In recent years, dramatic fluctuations in the value of the Canadian dollar have tended to correlate with shifts in oil prices, reflecting the Canadian dollar's status as a [[petrocurrency]] owing to Canada's significant oil exports.<ref>{{cite web |title=On the Canadian dollar and the oil prices |url=http://opendatadepot.org/blog/entry/6/on-the-canadian-dollar-and-the-oil-prices/ |date=March 12, 2013 |access-date=March 16, 2013 |archive-url=https://web.archive.org/web/20140222172007/http://opendatadepot.org/blog/entry/6/on-the-canadian-dollar-and-the-oil-prices/ |archive-date=February 22, 2014}}</ref>

The Canadian dollar traded at a record high of {{US$|2.78}} in terms of [[Greenback (1860s money)|American greenbacks]] on July 11, 1864, since the latter was inconvertible paper currency.<ref name="cdh">{{Cite web|url=http://www.exchangerate.com/currency-information/canadian-dollar.html|website=ExchangeRate.com|title=Canadian Dollar History|access-date=May 4, 2020|archive-date=February 28, 2020|archive-url=https://web.archive.org/web/20200228054552/http://www.exchangerate.com/currency-information/canadian-dollar.html|url-status=live}}</ref> However, the Canadian dollar remained close to par or 1:1 versus the gold or silver US dollar of the time.

Unlike other currencies in the [[Bretton Woods system]], whose values were [[Fixed exchange rate|fixed]], the Canadian dollar was allowed to [[Floating exchange rate|float]] from 1950 to 1962. Between 1952 and 1960, the Canadian dollar traded at a slight premium over the U.S. dollar, reaching a high of {{US$|1.0614}} on August 20, 1957.<ref name="cdh" />

The Canadian dollar fell considerably after 1960, and this contributed to Prime Minister [[John Diefenbaker]]'s defeat in the [[1963 Canadian federal election|1963 election]]. The Canadian dollar returned to a fixed exchange rate regime in 1962 when its value was set at {{US$|0.925}}, where it remained until 1970.<ref name="cdh" />

As an [[inflation]]-fighting measure, the Canadian dollar was allowed to float in 1970. Its value appreciated and it was worth more than the U.S. dollar for part of the 1970s. The high point was on April 25, 1974, when it reached {{US$|1.0443}}.<ref>{{Cite book|last=Powell|first=James|title=A History of the Canadian Dollar|publisher=Bank of Canada|year=2005|isbn=0-660-19571-2}}</ref>

The Canadian dollar fell in value against its American counterpart during the [[dot-com bubble|technological boom]] of the 1990s that was centred in the United States, and was traded for as little as US$0.6179 on January 21, 2002, which was an all-time low.<ref>{{cite web |author=oanda.com |url=http://www.oanda.com/convert/fxhistory?lang=en&result=1&date1=12%2F21%2F01&date=02%2F21%2F02&date_fmt=us&exch=USD&exch2=CAD&expr=EUR&expr2=USD&margin_fixed=0&format=HTML&SUBMIT=Get+Table |title=Historical exchange rate of CAD to USD from December 21, 2001 to February 21, 2002 |access-date=March 14, 2007 |url-status=dead |archive-url=https://web.archive.org/web/20070711215846/http://www.oanda.com/convert/fxhistory?lang=en&result=1&date1=12%2F21%2F01&date=02%2F21%2F02&date_fmt=us&exch=USD&exch2=CAD&expr=EUR&expr2=USD&margin_fixed=0&format=HTML&SUBMIT=Get+Table |archive-date=July 11, 2007}}</ref> Since then, its value against all major currencies rose until 2013, due in part to high prices for commodities (especially [[petroleum|oil]]) that Canada exports.<ref>{{cite news |title=How & Why Oil Impacts The Canadian Dollar |url=https://www.investopedia.com/articles/investing/021315/how-why-oil-impacts-canadian-dollar-cad.asp |access-date=February 11, 2019 |newspaper=Investopedia |date=October 16, 2018 |archive-date=February 12, 2019 |archive-url=https://web.archive.org/web/20190212130736/https://www.investopedia.com/articles/investing/021315/how-why-oil-impacts-canadian-dollar-cad.asp |url-status=live }}</ref>

The Canadian dollar's value against the U.S. dollar rose sharply in 2007 because of the continued strength of the Canadian economy and the U.S. currency's weakness on world markets. During trading on September 20, 2007, it met the U.S. dollar at parity for the first time since November 25, 1976.<ref>{{cite news |title=Topsy-turvy world last time loonie was on par with greenback |url=http://canadianpress.google.com/article/ALeqM5jCO65bVpbfPeEB0a5iAt7A2gFNnQ |archive-url=https://archive.today/20070609092030/http://canadianpress.google.com/article/ALeqM5jCO65bVpbfPeEB0a5iAt7A2gFNnQ |archive-date=June 9, 2007 |publisher=[[Canadian Press]] |date=September 20, 2007 |access-date=September 21, 2007}}</ref>

Inflation in the value of the Canadian dollar has been fairly low since the 1990s. In 2007 the Canadian dollar rebounded, soaring 23% in value.<ref name="cdh" />

On September 28, 2007, the Canadian dollar closed above the U.S. dollar for the first time in 30 years, at US$1.0052.<ref>{{cite news |url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20070928/loonie_parity_070928/20070928?hub=Canada&s_name= |title=Loonie closes above parity with greenback |publisher=ctv.ca |format=.html |access-date=September 28, 2007 |url-status=dead |archive-url=https://web.archive.org/web/20071012133543/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20070928/loonie_parity_070928/20070928?hub=Canada&s_name= |archive-date=October 12, 2007}}</ref> On November 7, 2007, it hit US$1.1024 during trading, a modern-day high<ref>{{cite news |url=http://www.reportonbusiness.com/servlet/story/RTGAM.20071107.wloonie1107/BNStory/Business/home |title=China sends loonie flying above $1.10 |newspaper=The Globe and Mail |first=Tavia |last=Grant |date=November 7, 2007 |access-date=November 7, 2007 |archive-date=December 1, 2008 |archive-url=https://web.archive.org/web/20081201102330/http://www.reportonbusiness.com/servlet/story/RTGAM.20071107.wloonie1107/BNStory/Business/home |url-status=live }}</ref> after China announced it would diversify its {{US$|1.43}}{{nbsp}}trillion foreign exchange reserve away from the U.S. dollar. By November 30, however, the Canadian dollar was once again at par with the U.S. dollar, and on December 4, the dollar had retreated back to US$0.98, through a cut in interest rates made by the Bank of Canada due to concerns about exports to the U.S.

Due to its soaring value and new record highs at the time, the Canadian dollar was named the [[Canadian Newsmaker of the Year (Time)|Canadian Newsmaker of the Year]] for 2007 by the Canadian edition of ''[[Time (magazine)|Time]]'' magazine.<ref name="Newsmaker2007">{{cite news |url=https://www.cbc.ca/news/canada/lofty-loonie-named-time-s-top-canadian-newsmaker-1.657204 |title=Lofty loonie named Time's top Canadian newsmaker |publisher=Cbc.ca |date=December 20, 2007 |access-date=March 2, 2011 |url-status=live |archive-url=https://web.archive.org/web/20080605173024/http://www.cbc.ca/canada/story/2007/12/20/time-mag-newsmaker.html |archive-date=June 5, 2008}}</ref>

Since the late 2000s, the Canadian dollar has been valued at levels comparable to the years before its swift rise in 2007. For most of the 2010s, the exchange rate of Canadian to US dollars was approximately US$0.70 to Can$1.00.<ref>{{Cite web|title=XE: CAD / USD Currency Chart. Canadian Dollar to US Dollar Rates|url=https://www.xe.com/currencycharts/?from=CAD&to=USD&view=10Y|access-date=October 8, 2020|website=www.xe.com|archive-date=January 10, 2020|archive-url=https://web.archive.org/web/20200110222402/https://www.xe.com/currencycharts/?from=CAD&to=USD&view=10Y|url-status=live}}</ref>