Canada Local Currency

Local Currency

The unit of currency in Canada is the Canadian Dollar. Canadian coins come in 1c (penny), 5c (nickel), 10c (dime), 25c (quarter), $1 (known as a loonie), or $2 (known as a toonie). Paper currency comes in $5 (blue), $10 (purple), $20 (green), $50 (red) and $100 (brown) denominations.

The Canadian dollar has seen fluctuations in recent years, bottoming out in January 2002 when one dollar was worth a mere US$0.62. By late 2007, it had rebounded and remains at almost equal value to the US dollar. To check current rates visit www.xe.com.

When exchanging currencies, look out for currency exchange offices in larger cities. These can offer better rates than banks. Some businesses near the US-Canadian border and in big cities accept payment in US dollars, with change given in Canadian dollars.

Major credit cards such as American Express, MasterCard and Visa are widely accepted in Canada. Your financial institution at home will automatically make the currency exchange before you receive your monthly statement.

Using an ABM (automatic bank machine), also known as ATM (automatic teller machine), is an easy way to access cash while traveling in Canada. Most international bankcard systems, including Interac, Plus, Cirrus and Maestro will work at most ABMs in Canada.

The GST or ‘goods and services tax’ is a 5% federal tax applied to most goods and services provided in Canada. In all provinces, except Alberta, there is an additional provincial sales tax (PST) of between 5-10% added to purchases and financial transactions. The territories do not add PST. The HST or ‘harmonised sales tax’ is a 13% tax that replaces the PST and GST in the provinces of Newfoundland and Labrador, Nova Scotia and New Brunswick. Some hotels and retailers include the GST or HST in their places; others add it on separately.

If you book accommodation in conjunction with a rental car, plane ticket or other service (so that it all appears on the same bill from a ‘tour operator’), you should be eligible to get 50% of the tax refunded from your accommodation. Visit Canada Revenue Agency’s website www.cra-arc.gc.ca and fill out the GST/HST Refund Application for Tour Packages form.