The history of the Canadian dollar began shortly after the 1867 Canadian Confederation. Prior to the currency’s introduction, early periods of bartering among Inuit and First Nations inhabitants gave way to adoption of the British Pound and currencies linked to the US dollar when settlement patterns changed.
The Canadian dollar was originally partially backed by gold, but Canada moved away from the gold standard permanently after Britain’s decision to do so during the Great Depression in 1931. The Canadian dollar has since moved between fixed and floating exchange rates.
The Bank of Canada was established in 1935 and initially issued a series of ten Canadian banknotes, which were reduced in number over time. Soon after, the chartered banks of the country were afforded lesser power to issue their own notes, and the mid 20th century saw the Bank of Canada become the sole issuer of paper currency.