A considerable amount money flows between the United Kingdom and Canada regularly. In 2016, remittances sent from the UK to Canada accounted for around U.S. $93 million. In the same year, more than U.S. $590 million was sent from Canada to the UK as remittances. Bilateral trade between both regions exceeded U.S. $19 billion in 2016.
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The Pound Sterling
The use of the pound as a unit of currency dates back to 775 AD, making it the world’s oldest currency that is still in circulation. Other than the UK, the pound sterling is used as legal tender in Guernsey, Jersey, Isle of Man, Tristan da Cunha, South Georgia and the South Sandwich Islands, and the British Antarctic Territory.
The pound sterling served as the world’s most preferred reserve currency for more than a century, until its economy was hit by both the World Wars. Now, it is the fourth on the list of reserve currencies, and also the world’s fourth most commonly traded currency. In April 2016, the pound’s share of the global forex market turnover stood at 12.8%.
|Nicknames||Quid, pound, bread, moolah, nicker, bones, |
dough, readies, folding stuff, paper
|Bank notes||GBP 1, GBP 5, GBP 10, GBP 50, GBP 100|
|Coins||1p, 2p, 5p, 10p, 20p, 50p, GBP 1, GBP 2|
The Canadian Dollar
Canada adopted the Canadian dollar as its official currency in 1858. Its use, alongside the euro, is also found in Miquelon and Saint Pierre. The currency gets in nickname “loonie’ from the image of the loon that comes on Canada’s one-dollar coin.
In April 2016, the global forex market turnover share of the Canadian dollar was 5.1%, making it the world’s sixth most commonly traded currency. It is often referred to as a commodity currency because of its dependence on the natural resources that Canada exports.
|Currency symbol||$, C$|
|Nicknames||Loonie, huard in French|
|Bank notes||$5, $10, $20, $50, $100|
|Coins||1c, 5c, 10c, 25c, 50c, $1, $2|
Pound Sterling / Canadian Dollar Historical Rates
The UK was Canada’s biggest trade partner in the 19th century, during which time the pound sterling traded at more than C$2. During the 20th century, the value of the pound averaged at around C$2, although it did get to around C$2.9 briefly toward the end of 1980 and early 1981. The Canadian dollar then gradually gained value, and was trading at around C$1.5 by January 1985.
From then, until early 2010, the GBP/CAD pair experienced reasonable volatility, with the Canadian dollar trading largely between C$1.5 and C$2.5 against the pound sterling. The pair experienced some stability from early 2010 to mid 2013, with the Canadian dollar trading in between C$1.5 and C$1.6 against the pound sterling. The pound sterling then gained in value, getting to over C$2 by late 2015.
After the Brexit referendum in June 2016, the pound sterling’s value began to fall against the Canadian dollar. By October 2016, the Canadian dollar was trading at around C$1.65 against the pound sterling. Since then, the pound’s performance seems rather hinged on Brexit, with even the rate hike by the Bank of England in mid 2018 having little effect on the currency’s value.
GBP/CAD in the last five years
|GBP 1 =|
|1 July, 2013||C$1.5629|
|1 July, 2014||C$1.8417|
|1 July, 2015||C$2.0450|
|1 July, 2016||C$1.7252|
|1 July, 2017||C$1.6490|
GBP/CAD in the last five months
|GBP 1 =|
|1 March, 2018||C$1.8075|
|1 April, 2018||C$1.7688|
|1 May, 2018||C$1.7235|
|1 June, 2018||C$1.7346|
|1 July, 2018||C$1.7074|
What Affects GBP/CAD Rates?
The close relationship between the Canadian economy and the country’s oil exports tends to have a bearing on how the GBP/CAD currency pair performs. For instance, the value of the Canadian dollar increases when oil prices rise. On the other hand, since the economy of the UK does not depend on oil, the value of the pound sterling increases when there is a drop in oil prices.
The gross domestic product of both regions may affect the value of their respective currencies. Other factors that may have an effect on the GBP/CAD currency pair include interest rate differentials, inflation, political climate, investor sentiment, changes in monetary policy, and foreign trade.
If you wish to send money from the UK to Canada or from Canada to the UK, it is important that you take a look at the prevailing GBP-CAD exchange rate. Bear in mind that exchange rates provided and fees charged vary from one service provider to the next, so comparing your options is the best way forward.