Canada Finance, Finance Canada

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The Canada finance scenario, or finance in Canada, has been improving over the past several years. The National Policy outlined by Sir John Alexander Macdonald, the first Prime Minister of Canada (1867), became the basis for the country’s economic programs for several decades. Canada was the world’s fastest growing economy during 1896-1914. Canada is among the world’s wealthiest nations, with one of the highest levels of economic freedom. In 2008, the nation’s total government debt was the lowest in the G8.

Canada Finance: Currency

The Canadian dollar (C$) is issued by the country’s central bank, the Bank of Canada. In 2007, the Canadian dollar was the seventh most traded currency in the world. The Canadian dollar was pegged at par with the US dollar when the Province of Canada decided to maintain all records in dollars and cents in 1858. Canada finally adopted the free float market regime for its currency in 1970.

The Canadian currency fell to its all-time low in 2002. Since then, its value has risen against all major currencies, partly due to the high price of commodities exported by the country. The value of the Canadian dollar rose sharply against the US dollar in 2007 due to the strengthening of the Canadian economy and US dollar weakness in the world markets.

Several central and commercial banks in Central America and South America use the Canadian dollar as their reserve currency. This currency has also been playing an important role in the economies and finance systems of the UK, France and Denmark since the 1950s.

Canada Finance: Stock Market

There are eight stock exchanges in Canada. These are the Alberta Stock Exchange, Montreal Stock Exchange, Toronto Stock Exchange, Vancouver Stock Exchange, Winnipeg Stock Exchange, the Canadian National Stock Exchange, Canadian Stock Market Reports and Canada Stockwatch.

Of these, the Toronto Stock Exchange (TSX) is the largest in the country and ranked fifteenth among the world’s top bourses in terms of value of shares traded (US$1,634 billion) in 2007. As of December 31, 2007, 3,951 companies were listed on the TSX. The Montreal Stock Exchange (also called Montreal Exchange) is the oldest bourse in Canada, while the Canadian NationalStock Exchange was added to the list on January 1, 2009.

The stock markets in Canada are controlled by self-regulatory organizations, like the Investment Dealers Association of Canada,as well as the various Canadian stock exchanges. These organizations have the power to discipline its members and securities issuers.

Canada Finance: Commodity Market

Canada has several commodities exchanges, of which the Winnipeg Commodity Exchange (WCE), Montreal Exchange and Commodity Exchange Inc are the most popular. The WCE, now known as ICE Futures Canada, is the only commodity futures exchange in the country. The Montreal Exchange is the oldest exchange in Canada and is best known for its financial derivatives market, clearing services and IT business solutions.

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