Early 1600s: Beaver pelts are the one universally accepted medium of change, although wheat and moose skins are additionally authorized tender
Mid 1600s: Wampum, or strings and belts made out of shell beads, turns into authorized tender in colonial New England. Eight white beads or 4 purple beads purchase one penny.
June 8, 1685: The primary difficulty of card cash happens, which is printed on taking part in playing cards. The follow is criticized as a result of it’s simple to counterfeit.
1722: Copper cash are launched, although retailers didn’t like them; they continued to let individuals purchase items primarily based on their very own credit score standing.
Eighteenth century: The dearth of a typical foreign money and the variations in rankings given to the various cash in circulation within the colonies, “undoubtedly hindered trade and was a major source of economic inefficiency.”
1817: The Montreal Financial institution (subsequently the Financial institution of Montreal) issued the primary financial institution notes in Canada after its institution in 1817. Different banks quickly adopted go well with. The notes have been properly acquired and have become the primary technique of cost in British North America.
1854 – 1914: The Dominion of Canada is below the gold normal. The worth of the Canadian greenback was fastened when it comes to gold and valued at par with the U.S. foreign money. Each U.S. and British gold cash are authorized tender in Canada.
July 11, 1864: The buck sinks to lower than 36 cents (Canadian), an all-time peak for the Canadian greenback, from near parity in early 1862. It subsequently recovers by way of the last decade and the currencies commerce round par till the outbreak of the First World Battle.
Mid-1950: Canadian greenback depreciates. The federal authorities cancels fastened parity, placing it at odds with the Worldwide Financial Fund, and the Canadian foreign money appreciates.
Aug. 20, 1957: The Canadian greenback hits a peak of $1.06 (U.S.).
Might 2, 1962: The federal government establishes a brand new par for the Canadian greenback, fixing it at 92.50 cents (U.S.) with a fluctuation band of 1 per cent.
Might 31, 1970: The federal government floats the Canadian greenback amid a rising finances surplus and rising inflation.
April 25, 1974: The greenback hits a excessive of $1.04 (U.S.) towards the buck as world demand boosts the value of uncooked supplies. The power sparked concern about Canada’s export industries at a time when the unemployment charge was already excessive.
Nov. 15, 1976: The Parti Québécois is elected, inflicting markets to “make a major reassessment of the Canadian dollar’s prospects.” On the identical time, commodity costs begin to soften, inflation picks up. By 1979, the foreign money slides to 84 cents (U.S.).
August, 1981: The Financial institution of Canada’s key charge hits 21.2 per cent. By 1982, the greenback traded beneath 77 cents (U.S.).
Feb. 4, 1986: The Canadian greenback hits a report low of 69.13 cents (U.S.) as falling commodity costs harm the financial system.
1988-1989: The foreign money rebounds considerably to shut the last decade at 86 cents (U.S.).
Nineteen Nineties: The foreign money weakens once more, closing the last decade at 69.29 cents (U.S.). Inflation and rates of interest fall and commodity costs soften.
1998: The worldwide disaster in rising markets akin to Russia and Latin America causes the greenback to slip as little as 63.11 cents (U.S.).
2002: The foreign money hits a report low of 61.98 cents (U.S.) on Jan. 18, 2002.
2006: The loonie tops 90 cents (U.S.), prompting requires parity. It then weakens for a lot of the stability of the 12 months.
2007: The loonie takes flight once more. On Might 31, it topped 94 cents (U.S.) – the best stage in 30 years. Later that 12 months it hit parity in September. That fall the loonie hit its modern-day intra-day excessive of $1.10 (U.S.), and hit its highest closing value of $1.08 (U.S.) on Nov. 6, 2007.
2008: The loonie continued to commerce close to parity till it dipped beneath that stage on July 21, 2008.
2009: The Canadian greenback closed at a latest low of 76 cents U.S. on March 9, 2009, earlier than restarting a speedy ascent larger towards a basket of worldwide currencies.
2010: The loonie touches parity for the primary time in 20 months on April 6, 2010.
The Financial Historical past of the World
© Martin A. Armstrong
