Canadian currency: What money is used in Canada

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Canada’s official currency is the Canadian Dollar, often written as CAD or C$. One dollar equals 100 cents, and coins come in values like five, ten, twenty-five, one, and two dollars.

The Canadian Dollar might look a lot like the U.S. dollar, but it is a separate currency. Its value changes based on the economy, trade, and global exchange rates. If you are traveling, it’s a good idea to check the current exchange rate of money in Canada before exchanging money or paying for things.

While most stores accept debit and credit cards, it’s still helpful to carry a little cash, especially when visiting small towns or local markets.

What currency does Canada use?

Canada’s official currency is the Canadian Dollar, written as CAD or sometimes shown as C$. One Canadian dollar equals 100 cents, and it is issued by the Bank of Canada¹, which manages the country’s money supply.

Canadian coins include five, ten, and twenty-five-cent pieces, as well as one and two-dollar coins. People in Canada often use nicknames for their coins.

Canadian banknotes are available in five, ten, twenty, fifty, and one hundred dollar amounts. Canada no longer uses the one-cent coin, which people used to call the penny. Now, when you pay with cash, prices are rounded to the nearest five cents. This change saves money on making coins and makes buying things a bit faster.

Can you use U.S. dollars in Canada?

A lot of visitors wonder, Does Canada use US dollars? The answer is no. Canada uses its own currency, the Canadian Dollar (CAD). Still, you might find that some places near the US border, at airports, or in tourist spots will accept US cash to make things easier for travelers.

Even then, it is not always a good deal. Businesses that accept US currency usually set their own exchange rate, which often means you will receive less value for your money by five to ten percent. Most shops and restaurants prefer payment in Canadian Dollars because it keeps pricing consistent and avoids confusion.

Exchanging money at a bank or withdrawing Canadian Dollars from an ATM is usually the better option. Credit and debit cards are also accepted almost everywhere and offer a fair exchange rate.

Canadian Dollar exchange rate and value

The value of the Canadian Dollar compared to the US Dollar shifts every day due to changes in the global market. In 2025, one US dollar is worth about 1.41 Canadian Dollars.² These numbers can go up or down based on things like trade, inflation, and interest rates.

The Bank of Canada works to keep the Canadian Dollar steady by setting monetary policies and watching the economy. These policies can make the currency stronger or weaker compared to others. Keeping the dollar stable is important for daily purchases and for trading with other countries.

If you plan to travel, shop online, or send money to another country, it’s a good idea to check the latest CAD to USD rate. Trusted exchange websites or financial apps can give you up-to-date information. You can make smarter decisions and get more for your money by checking rates often.

How to get Canadian Dollars

There are several easy ways to get Canadian Dollars when traveling or sending money to Canada. One option is to exchange your money before the trip. Banks and currency exchange kiosks can provide cash, but their rates can differ. Compare rates from multiple outlets to get a better deal and avoid extra costs.

Another good choice is to withdraw Canadian Dollars from an ATM after you arrive. This usually gives a fairer rate than airport kiosks, which often charge high service fees. It is also a convenient option since ATMs are widely available. Just remember to ask your bank about any international withdrawal fees before your trip.

Digital transfer services are becoming more popular, too. Platforms like BOSS Money make it easy to send money internationally with transparent fees and strong security standards. Even if you’re not sending funds to Canada, choosing a trusted provider helps ensure your money arrives quickly and safely wherever it needs to go.

What do Canadian bills and coins look like?

Canadian money stands out for its bright colors, detailed artwork, and sturdy design. The bills are made from a special plastic-like polymer, which can sustain the daily handling. Each bill is carefully printed with layers of ink, clear sections, and security features like holograms, metallic strips, and see-through windows to help stop counterfeiting.

In addition to security features, every bill also has raised Braille markings to help people with vision loss identify the value. The designs feature famous Canadians such as Viola Desmond, Sir Wilfrid Laurier, and Queen Elizabeth II, along with symbols that celebrate the country’s culture and natural beauty.

Coins are equally unique, providing another unique aspect of Canadian currency. The one-dollar coin, or “loonie,” shows a loon bird, while the two-dollar coin, or “toonie,” features a polar bear. Canadians often use coins more than Americans, especially for small, everyday purchases.

Tips for using money in Canada

Managing your money in Canada is easy once you get the hang of it. While most payments are made digitally, cash can still be useful in certain situations. Bringing both cards and some cash will make paying for things simple and help you avoid any hassles while traveling. To learn more about how Canadian bills and coins are designed and secured, visit the Bank of Canada’s official banknotes page.³

Use cards and contactless payments

You can use credit and debit cards at nearly all places in Canada. Most shops, restaurants, and hotels accept contactless payments, making it fast and secure. Using your card usually gets you a better exchange rate than airport kiosks or local money changers. However, before traveling, let your bank know so your card works smoothly while abroad.

Keep some cash handy

Even though digital payments are common, they help to keep a small amount of cash. Smaller towns, markets, and local cafes sometimes prefer dealing with physical money. Coins and small bills are useful for tips, buses, and vending machines.

Avoid poor exchange rates

Airport and tourist kiosks often have poor exchange rates. You'll usually get a better deal at a bank or a licensed exchange service. If you need to send or receive money, choose trusted digital platforms like BOSS Money that show all fees and rates before you confirm the transfer.

Check exchange rates regularly

Exchange rates can change daily, so it's smart to check them before you pay or take out money. Easy-to-use cash apps and online tools can show you the latest rates and help you avoid extra charges.

Keep emergency cash

It's smart to keep a small emergency fund in cash in case your cards don't work or the networks are down. Having about 50 to 100 CAD set aside is usually enough for short-term needs.

Choose “Charge in CAD” when paying

When you pay with a foreign card, some machines ask if you want to pay in your home currency or in Canadian Dollars. Always pick Canadian Dollars (CAD) for a better rate. Choosing your home currency usually means a worse exchange rate.

Be aware of card fees

Some international cards charge foreign transaction fees, and these can add up. Check your bank’s fee policy and reference before you travel to avoid surprises. If you can, use a card that reduces or waives these fees.

FAQ

What currency is used in Canada?

The official currency in Canada is the Canadian Dollar. The Bank of Canada manages it, and you’ll use it for purchases everywhere in the country.

Can I use U.S. dollars in Canada?

You might be able to use U.S. dollars in some border towns, airports, or tourist spots, but most places prefer Canadian Dollars. The exchange rate is usually not great, so it’s best to pay with Canadian currency.

What is the Canadian dollar abbreviation?

The Canadian Dollar is shortened to CAD, and you’ll often see it written as C$ to tell it apart from other types of dollars.

Does Canada use the same dollar as the U.S.?

No, Canada uses its own currency. While Canadian bills and coins might look a bit like U.S. money, they have different values and designs.

Where can I exchange U.S. dollars for Canadian dollars?

You can exchange your money at banks, currency exchange offices, or ATMs in Canada. These options usually offer fair and safe rates.

Conclusion

The Canadian Dollar, or CAD, is the official currency used throughout Canada. Travelers usually get the best value by using CAD for their purchases. Stick to Canadian Dollars to avoid confusion and extra fees from exchanging foreign money. Some tourist areas may take U.S. dollars, but paying in CAD makes things easier and more straightforward.

It is a good idea to exchange some money before your trip or withdraw cash from a local ATM once you arrive. This makes sure you always have the right amount on hand for small purchases, tips, or transportation.

BOSS Money doesn’t currently support transfers to Canada, but it’s a trusted choice for sending money abroad safely and transparently. Always use reliable services when exchanging or transferring funds internationally. When managing your travel funds or supporting family overseas, always choose trusted services that provide clear exchange rates and secure transfers.

Sources: all third party information obtained from applicable website as of October 24, 2025

https://www.bankofcanada.ca/
https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=CAD
https://www.bankofcanada.ca/banknotes/

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