The Canadian dollar (sign: $; code: CAD) is the currency of Canada. As of 2011, the Canadian dollar is the 7th most traded currency in the world, accounting for 5.3% of the world's daily share. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies. It is divided into 100 cents.
Owing to the image of a loon on the one-dollar coin, the currency is sometimes referred to as the loonie (though this term is often reserved only for the coin itself).
Canadian historians until the 1980s tended to focus on economic history, including labour history. In part this is because Canada has had far fewer political or military conflicts than other societies. This was especially true in the first half of the twentieth century when economic history was overwhelmingly dominant. Many of the most prominent English Canadian historians from this period were economic historians, such as Harold Innis, Donald Creighton and Arthur R. M. Lower
Scholars of Canadian history were heirs to the traditions that developed in Europe and the United States, but frameworks that worked well elsewhere often failed in Canada. The heavily Marxist influenced economic history that dominates Europe has little relevance to most of Canadian history. A focus on class, urban areas, and industry fails to address Canada's rural and resource based economy. Similarly, the monetarist school that is dominant in the United States also has been difficult to transfer north of the border.
Besides being the main currency of the United States, the American dollar is used as the standard unit of currency in international markets for commodities such as gold and petroleum (the latter sometimes called petrocurrency is the source of the term petrodollar). Some non-U.S. companies dealing in globalized markets, such as Airbus, list their prices in dollars.
The U.S. dollar is the world's foremost reserve currency. In addition to holdings by central banks and other institutions, there are many private holdings, which are believed]by whom?[ to be mostly in one-hundred-dollar banknotes (indeed, most American banknotes actually are held outside the United States). All holdings of U.S.-dollar bank deposits held by non-residents of the United States are known as "eurodollars" (not to be confused with the euro), regardless of the location of the bank holding the deposit (which may be inside or outside the U.S.).
The dollar was the currency of the colony and Dominion of Newfoundland from 1865 until 1949, when Newfoundland became a province of Canada. It was subdivided into 100 cents.
In 1865 Newfoundland adopted the gold standard, and the dollar replaced the pound at a rate of 1 dollar = 4 shillings 2 pence (50 pence) sterling, slightly higher than the Canadian dollar (worth 4s 1.3d). The significance of this rating was that two cents would be equal to one penny sterling. It was seen as a compromise between adopting the British system or the American system. It also had the effect of aligning the Newfoundland unit to the dollar unit in the British Eastern Caribbean colonies. The West Indian dollar was directly descended from the Spanish Dollar (Pieces of Eight). Newfoundland was unique in the British Empire in that it was the only part to introduce its own gold coin in conjunction with its gold standard. Newfoundland two dollar coins were minted intermittently until the Newfoundland banking crash of 1894. In 1895, following this banking crisis, the Canadian banks moved into Newfoundland and the value of the Newfoundland dollar was adjusted to set it equal to the Canadian dollar, a devaluation of 1.4%. The Newfoundland dollar was replaced by the Canadian dollar at par when Newfoundland joined Canada in 1949.