![]() You can also send the money to their bank account. When sending money using Western Union, your receiver will get cash in their local currency that they can pick up from Western Union agent locations. You also do not need to open a bank account to exchange currencies. However, they have many locations where you can receive payments in cash. Western Union mainly acts as an intermediary and they do not perform the functions of a conventional bank. Western Union’s exchange rates are usually better than the banks, but there may be fees that can make certain transfers more expensive. They are not a bank, but their foreign exchange services are similar to the ones offered by the major banks. Western Union is a financial services company that specializes in letting users transfer money internationally. This includes foreign exchange companies, online currency exchanges, and forex brokers. Instead, the mid-market rate is generally used as a benchmark.īesides the major banks, there are other ways to exchange currencies in Canada. You will be paying the forex spread when you buy and sell foreign currencies, and you will not be able to buy or sell at the mid-market rate. This means that the forex spread is the amount of money that your bank or broker would make. The mid-market rate is the price in-between the bid (buy) price and the ask (sell) price. The ask price is the rate at which your broker or bank is willing to sell currency, while the bid price is the rate at which they are willing to buy it from you. The foreign exchange spread, also known as a bid-ask spread, is the difference between buying and selling foreign currency using CAD. This is known as a foreign exchange spread. That’s because you will be buying at a slightly higher price and selling at a slightly lower price. Instead, a percentage of the transaction is taken out each time you exchange currencies. The Foreign Exchange Spread: If you exchange CAD for USD and then convert it back to CAD, you will not have the same amount that you started with. The foreign exchange (forex) rate that you see from your bank is influenced by the forex exchange spread and the type of transaction that the currency conversion is for. Some banks may also charge additional fees to non-clients purchasing foreign currency. This means having a bank account or credit card with them. Some banks require you to be a client in order to use the bank’s currency exchange services. However, banks are reliable, accessible, and easy to use. The opposite is also true if you are buying Canadian Dollars with a bank. This means that if you are buying a foreign currency, you will be paying more Canadian Dollars to receive less foreign currency. Banks will typically have a worse exchange rate compared to the actual market rate. One way that you can convert Canadian Dollars (CAD) into a foreign currency is by using a bank. In 2011, the Central Bank of Canada issued a new series of bank notes printed on a polymer material.The “Big 5” are Canada’s 5 largest commercial banks: RBC, TD, Scotiabank, CIBC, and BMO. The first Loonie coin was introduced in 1987 and the two-dollar coin (often called the Toonie) was launched in 1996. The Bank of Canada was established in 1934 with the first issue of banknotes a year later. After Canadian Confederation, the government decimalized the currency and a new series of coins were issued in the Dominion of Canada. During this time, both US Dollars and British Gold Sovereigns were legal tender within Canada's borders. In 1841, as a British colony, the Province of Canada began to issue a currency called the Canadian Pound but in 1858, the Canadian Dollar replaced the Pound and aligned with the US Dollar. The very first banknotes were issued in Canada in 1821 by the Montreal Bank and soon became a primary method of payment. It is also known as a commodity currency, due to the country's substantial raw materialĬurrency was first introduced to Canada in the early 1660s when French colonists brought coins to the area. ![]() The Canadian Dollar is held as a reserve currency by a number of central banks. People also refer to the CAD as the Loonie, buck, Huard, and Piastre (in French). The Canadian Dollar is the seventh-most traded currency on the Forex market, as many institutions and individuals trade the CAD. ![]()
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