Canada currency guide: The Canadian dollar (CAD)

Is Canada in your future travel plans? Or maybe you’re sending money to friends or family who live there?

If so, this guide is for you. Here’s a quick look at Canada’s currency, the Canadian dollar (CAD). We’ll cover its history, how much it’s currently worth, and what matters most when moving money across borders.

 What currency does Canada use?

Canada uses the Canadian dollar, abbreviated as “CAD” and commonly marked with a dollar sign or “C$” to distinguish it from other dollar currencies. The CAD ranks among the world’s strongest currencies.

Canadian coins come in $1 and $2 pieces, colloquially called loonies and toonies. There are also 5-, 10-, 25-, and 50-cent coins. The Royal Canadian Mint stopped producing pennies in 2012.

Paper money comes in $5, $10, $20, $50, and $100 bills. The banknotes are colorful and vibrant, featuring notable politicians, royalty, and other prominent individuals.

Canada’s most recent banknotes are designed vertically instead of horizontally. The $5 note will soon feature Terry Fox, an athlete and philanthropist, and civil rights activist Viola Desmond adorns the $10 note. The new $20 vertical note will soon feature King Charles III, the British monarch and Canada’s head of state.

 History of the Canadian dollar

During the early colonial era, Canada used a patchwork of currencies, including British pounds, French livres, Spanish dollars, and early American coins. However, in the mid-1800s, Canada adopted the decimal system and introduced its own dollar, modeled after the US dollar.

By the early 20th century, the Canadian dollar had replaced regional and foreign currencies, becoming the official and trusted standard across all provinces for everyday transactions and national trade. The Bank of Canada, established in the 1930s, now prints and manages Canadian currency.

 How much is the Canadian dollar worth?

In the first half of 2025, the Canadian dollar traded between roughly $1.36 and $1.47 against the US dollar. Like all currencies, CAD exchange rates fluctuate constantly. Its value rises or falls based on a range of economic and political factors, including inflation, trade policies, and market conditions.

To check today’s rate, use Western Union’s USD-to-CAD currency calculator.

 7 tips for exchanging US dollars to Canadian dollars

Want to make the most of your USD when converting to CAD? These seven tips can help you get better value on your exchange.

 1. Research and compare exchange rates

Exchange rates (and fees) can vary widely between banks, online platforms, and kiosks. Don’t assume they all offer the same deal. Research and compare exchange rates from multiple vendors.

Check the full cost of converting your money, including any hidden fees, to see how many Canadian dollars you’ll actually receive. For up-to-date rates, the Western Union^® app lets you track currency values in real time.

 2. Notify your bank ahead of traveling

To prevent travel interruptions, let your bank know when you plan to travel to Canada. This will minimize any potential issues, like your bank mistakenly identifying your travel spending as fraudulent charges.

A quick call or online message to share your travel dates ensures you can use Canadian currency without disruptions.

 3. Avoid exchanging money at airports, hotels, and tourist areas

When deciding where to exchange currency, it’s typically best to avoid counters at the airport or other touristy areas. These spots tend to offer poor exchange rates and might even tack on hidden fees or inflated commissions.

Also be cautious of exchange booths advertising too-good-to-be-true rates or operating without clear credentials. These can be red flags for scams or counterfeit currency.

 4. Consider commissions and fees

Many currency exchange services in Canada charge commissions or tack on extra fees. These can eat into the value you receive. That’s why it can be more cost-effective to use a service like Western Union, which offers upfront pricing, so you know exactly what you or your recipient will pay.

Taking the time to compare currency exchange services, including their fees, will help you get the best value for your money.

 5. Opt to be charged in Canadian currency when withdrawing money from ATMs

ATMs are a convenient option for getting Canadian currency. When withdrawing money, always choose to be charged in Canadian dollars vs. your home currency. This is one of the best ways to exchange currencies because it allows the bank to handle the currency conversion, which often means you pay less in fees and get a better exchange rate.

 6. Understand that exchange rates vary depending on the day

Some days are better than others for converting your money to Canadian currency, as exchange rates fluctuate daily. Before you travel to Canada, consider tracking live exchange rates with the Western Union app. That way, you can time your exchange for when the rate is most advantageous.

 7. Use reputable exchanges

Stick to trusted providers when exchanging USD for Canadian currency. Look for companies with strong reputations and clear security measures to help protect your funds.

Western Union, for example, offers data encryption, transfer tracking, PCI DSS compliance, and Touch ID security. And if you prefer an in-person exchange, Western Union also has over a dozen agent locations across Canada.

 Using money in Canada

Here’s what to know about using money in Canada, including the ins and outs of Canada’s tipping culture.

 Can you use US dollars in Canada?

You may be able to use US dollars in tourist-heavy border cities like Niagara Falls, but most Canadian businesses expect payment in Canadian dollars. And even where USD is accepted, the exchange rate likely won’t be in your favor.

A credit or debit card with no foreign transaction fees or mobile pay systems like Apple Pay can be better options. Or you might withdraw CAD from an ATM after you arrive in Canada.

If you’re sending money to Canada, be sure to use a trusted provider like a bank or Western Union.

 Tipping etiquette in Canada

Tipping is a common practice in Canada. At restaurants, it’s standard to tip between 15% and 20%. Tipping bellhops, cleaners, and other hotel staff is also welcome.

If taking a tour, plan to tip the guide between 5 and 20 Canadian dollars, depending on the length of your tour. If you use a taxi, leave a 10% to 15% tip, and if you use a ride-share service, you can choose whether to tip within the app.

 Send money to Canada with Western Union

Need to send money to Canada? Western Union offers flexible options. Choose from more than a dozen agent locations across the country, or send Canadian dollars digitally through our website or mobile app.

 Explore more currency guides

Planning to travel beyond Canada? Check out more currency guides so you know what to expect when exchanging money in other countries:

• India currency guide: The Indian rupee (INR)
• Philippines currency guide: The Philippine peso (PHP)
• Jamaica currency guide: The Jamaican dollar (JMD)
• China currency guide: The Chinese yuan (CNY)
• Vietnam currency guide: The Vietnamese dong (VND)