Coins of Canada - Changes in Coinage

Changes in Coinage

The most significant recent developments in Canadian coinage were the introduction of $1 and $2 coins. The $1 coin (the "loonie") -- was released in 1987. The $1 banknote would remain in issue and in circulation alongside the one dollar coin for the next two years, until it was withdrawn in 1989. The coin was to be the voyageur-design silver (then nickel) dollar coins that had previously been in limited circulation. The dies were lost/stolen(?) in Nov 1986, requiring a redesign. The new coin is colloquially called the "loonie," for the common loon on its reverse, and the name is frequently applied to the currency unit as well. It is made of nickel plated with aureate bronze. The $2 coin, carrying a polar bear, was introduced in 1996, is called by analogy the "toonie" or the "doubloonie"or "two loonies (toonie)" and is bimetallic. The $2 banknote was withdrawn at the same time that the coin was released. Unlike several U.S. attempts to introduce a dollar coin, the new coins were quickly accepted by the public, owing largely to the fact that the mint and government forced the switch by removing the $1 and $2 bills from circulation.

Between 1997 and 2001, the One Dollar Loon coin was not issued for general circulation. Due to the high demand for the Two Dollar Polar Bear coin (mintages between 1997 and 2001 were as high as 29 million in 2000 alone), the dollar coin was only produced for the standard collector sets that were made available on an annual basis, such as the Uncirculated, O Canada, Specimen and Proof sets.

On March 29, 2012, the Canadian government announced that the 1¢ coin would be retired. The Royal Canadian Mint will stop producing 1¢ coins in the fall of 2012, but the coins will remain legal tender. Cash transactions will be rounded to the nearest 5¢, while non-cash transactions (using cheques, credit cards, or debit cards) will continue to be rounded to the nearest 1¢.