Canadian Dollar price today

The Canadian dollar price is a rate that thousands of Iranian families with children, relatives or immigration plans in Canada follow closely. Canada is one of the main destinations for Iranians emigrating to study or work, and the costs of this path, from proof of funds to tuition and rent, are calculated in Canadian dollars. On this page you can see the live price of the Canadian dollar in Tehran's open market in Toman, and further down you will learn about the features of this currency, the factors that affect it, and tips for buying and transferring it.

The Canadian dollar: a currency tied to oil and natural resources

The Canadian dollar (CAD) is Canada's official currency, and each dollar is divided into 100 cents. In financial markets it is also called the "Loonie", a name taken from the image of the loon bird on Canada's one-dollar coin. Canada's monetary policy is set by the Bank of Canada , which was founded in the 1930s and whose main goal is to keep inflation at around 2 percent.

Canada is one of the world's largest oil producers and exporters, and most of its exports, including oil, go to the US. That is why the Canadian dollar falls into the category of "commodity currencies": currencies whose value is largely tied to the prices of raw materials and the state of their main trading partner's economy.

What do Iranians use the Canadian dollar for?

• Study immigration: International students must show they can cover their tuition and living costs to get a study permit. These amounts, as well as university and college tuition, are set in Canadian dollars.
• Work immigration and permanent residence: In some immigration programs, applicants must show "proof of funds" or a specific balance in Canadian dollars. Fluctuations in this currency directly affect the Toman cost of the application.
• Family living costs: The Iranian community in Canada, especially in Toronto and Vancouver, is large, and sending money to family members creates steady demand for the Canadian dollar.
• Travel: Trips to visit family or attend graduation ceremonies also account for part of the demand for banknotes.

Canada cut diplomatic relations with Iran in 2012 and has no embassy in Tehran; consular and visa matters are handled through Canadian embassies in other countries. This, along with banking restrictions, has made transferring money to Canada more complicated.

How is the Toman rate of the Canadian dollar formed?

The price of the Canadian dollar in Tehran is roughly equal to the price of the US dollar in the open market divided by the global rate of the US dollar to Canadian dollar (USD/CAD). In this currency pair, the US dollar is the base currency; that is, its figure shows how many Canadian dollars one US dollar is worth. So when USD/CAD rises, the Canadian dollar has weakened.

Because one US dollar is usually worth more than one Canadian dollar, the Toman price of the Canadian dollar is lower than that of the US dollar. The two should not be confused; in ads and on exchange office boards, "dollar" without a suffix usually refers to the US dollar.

In the global market, the Canadian dollar usually fluctuates less against the US dollar than currencies like the pound or the Australian dollar, because the two countries' economies are tightly linked. Still, during periods when oil prices have crashed or spiked sharply, the Canadian dollar has also seen significant moves. To see this behavior, open the candlestick chart at the top of the page on the weekly or monthly timeframe and compare it with the open-market dollar trend; when the two charts diverge, it usually shows that a global factor, not a domestic one, has driven the Canadian dollar's move.

Factors affecting the Canadian dollar price

1. Domestic factors in Iran

Most of the long-term movement of the Canadian dollar in Tehran, as with all other currencies, comes from inflation, sanctions, foreign currency revenue and political expectations inside Iran.

2. Oil prices

The correlation of the Canadian dollar with crude oil prices is one of the best-known relationships in the currency market, although it does not always hold and weakens at times. When oil gets more expensive, Canada's export revenue rises and the Canadian dollar usually strengthens.

3. Monetary policy of the Bank of Canada and the Federal Reserve

The interest rate gap between Canada and the US has a big effect on USD/CAD. See the current rates on the global interest rates page.

4. Economic data

Canada's employment report, which is usually released at the same time as the US employment report, along with inflation and economic growth figures, are among the most volatile events for the Canadian dollar. Follow their release times in Teagle's economic calendar .

5. Seasonal student and immigration demand

Near the start of academic terms and when immigration applications reach the proof-of-funds stage, demand for Canadian dollar transfers in Tehran rises. Because the market for this currency in Iran is small, such demand can widen the gap between exchange offices' rates and the calculated rate.

Buying and transferring Canadian dollars: key tips

• Banknotes or transfer: For travel, Canadian dollar banknotes are bought from a licensed exchange office. For tuition, proof of funds or living costs, a transfer is usually needed, which because of banking restrictions is done through exchange offices, and its rate and fees differ from those for banknotes.
• Transfer documentation: In immigration applications, the source of funds and the transfer route matter; check the documentation requirements before transferring.
• Buying in stages: If you need a large amount by a specific date, buying in several rounds reduces the risk of picking a bad moment.
• Polymer banknotes: Since the 2010s, Canada has replaced paper banknotes with polymer ones.
• Price unit: The rates on this page are in Toman, and each Toman is ten Rials.

The Canadian dollar in global markets

USD/CAD is one of the major forex currency pairs, and most of its trading volume occurs during the New York session; see its timing in Iran time on the global market hours page. Other currency pairs such as euro to Canadian dollar (EUR/CAD) are also traded. Trading these pairs with leverage carries high risk; before taking any action, read forex broker reviews .

To compare with another currency that is also considered a "commodity currency", see the Australian dollar price and follow the list of all rates in the Iran market currency section .

The information on this page is for informational purposes only and is not a recommendation to buy or sell. Prices are obtained from the stated sources and may differ slightly from the rate at your local exchange office.