The Canadian government produces, recognizes and circulates its own country's currency, the Canada dollar. While you might be able to conduct some limited transactions in Canada with foreign (such as US) currency, your only sure way of being able to pay for anything in Canada--from gas to food to lodging--is having Canadian money ready to hand.

So, how do you magically change US dollars into Canadian currency? You have to find someone who's willing to buy your US dollars and sell you Canadian dollars in exchange. Before you start changing money, read on to master the most important Canadian dollar basics, like how to:

1. Recognize Canadian legal currency when you see it;

2. Calculate the value of the Canadian dollar against other currencies;

3. Know where to buy or sell Canadian currency.

Action Steps
The best contacts and resources to help you get it done

Check out photos of the Canadian five dollar bill and other denominations

Start building your information about the Canadian dollar by familiarizing yourself with its looks. Much like the United States, Canada occasionally reintroduces new styles of bills with improved security features, so you should study photos of both old- and new-style bills to ensure you don't fall victim to a counterfeiter.

I recommend: Vancouver dot Travel has images of bills in Canadian currency, in both old and new styles. CanadaInfo shows images of Canadian coins currently in circulation to help you identify them. Both sites also offer useful descriptions of the different types of Canadian currency.

Understand the essentials of Canadian dollar exchange rates

One US dollar may get you more or less than one Canadian dollar, and the amount you get may change at a moment's notice, because every day the Canadian dollar value rises and falls in relation to other currencies as they're traded on the world markets.

I recommend: Exchange-Rates.org gives you about six months of easy-to-read history--plus a graph--of exchange rates between the Canadian dollar and US dollar. The Bank of Canada currency converter lets you convert world currencies to and from Canadian dollars with the day's current exchange rates.

Find places to buy the Canadian dollar

Your most convenient options for getting Canadian currency include withdrawing it from an ATM when you arrive (make sure to notify your bank that you're traveling, or they might deny the transaction), changing US dollars to Canadian in a major US banking institution before you go or using online foreign currency ordering services or money changing booths that are located in most major international airports.

I recommend: Check out Wicked Local for a basic explanation of how to get foreign currency before or during travel abroad. OrderCurrency allows you to order Canadian currency online before you leave for the country and have it delivered the next day.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Most businesses, banks and websites that offer US to Canadian dollar conversion will also buy back Canadian money if you have any left over after your trip, but they typically only accept bills and not coins; so make sure to spend as much of your Canadian change as possible and keep any left over money as bills.

Canada is the U.S.’s biggest single trading partner, so it is important for most businesses to consider Canadian dollar exchange rates when planning. Especially with the Canadian dollar reaching an all-time high value with respect to the U.S. dollar in November, 2007, it has been crucial for businesses with any international component to keep a close eye on Canadian money. On the international scene, Canadian currency continues to gain in importance — once linked in value to U.S. currency, the Canadian dollar has risen in value compared to world currencies since 2002.

The change in the value of the Canadian dollar needs to be watched by U.S. businesses. Canadian dollar exchange rates remained low throughout the 1990s and in the early years of the 21st century. This meant that Canadians had little incentive to purchase higher-priced goods for import. With the higher Canadian dollar value over the past year, however, it had become cheaper for Canadian customers to purchase U.S. goods. Especially in the case of Internet sales, the Canadian dollar exchange makes it economical for customers in Canada to make their purchases from American companies and then import those goods into Canada.

Keep in mind the following when dealing with the Canadian dollar:

1. Remember the importance of the conversion rate between the American and Canadian dollars for trade.

2. Make sure that you have the correct Canadian dollar value when pricing goods.

3. Include both American and Canadian dollar exchange rates for businesses likely to reach customers in both countries.

Action Steps
The best contacts and resources to help you get it done

Research the historical values of the Canadian dollar

Long-term and short-term trends in the respective values of the American and Canadian currency help you set reasonable prices.

I recommend: The Bank of Canada offers graphs of the Canadian dollar exchange rate against the currencies of the U.S., Australia, Japan, the European Union, Hong Kong, China, Sweden and Mexico from 2002 to the present. For a more detailed graph, X-Rates offers an adjustable graph of Canadian dollar exchange versus many of the world’s major currencies. The graph can be adjusted to show 30 or 120 days, and the data built into the graph is made available as well.

Keep in mind other aspects of the strength of the Canadian dollar

The value of the Canadian dollar is determined principally by world market rates, but its exact worth varies most due to commodities exports. Keep this in mind when dealing with US to Canadian dollar conversion as well as conversion between other foreign monies and the Canada dollar.

I recommend: The Bank of Canada offers information about the Canadian dollar effective exchange rate index (CERI), which takes into account trade in goods, services, and non-energy commodities in comparison with Canada’s major trading partners.

Gather as much information about the Canadian dollar as possible both when setting prices

Business trends of the past will help you recognize future trends quickly.

I recommend: General information about the Canadian dollar is available from many websites, including Gocurrency.com and the Bank of Canada.

Whether you're a U.S. National with one foot in the door to the Canadian territories of the north, or someone from below the Canadian\American border analyzing the Canadian dollar for international use, you can benefit from training on how to handle the Canadian dollar value as part of an emerging global currency exchange market. These days, currencies are not just used internally, but shifted into foreign markets and even traded like stocks. Advanced learning options can help a business leader get situated in this new reality.

Take a look at what you can find over the web to help get conversant in Canadian dollar exchange rates or those of other currencies. Readers can locate:

1. College or university training options focusing on the Canadian dollar as part of the currency exchange in a larger market.

2. Other independent training options focusing on various uses of a currency.

3. Online tools and strategies resources for the Canada dollar.

Action Steps
The best contacts and resources to help you get it done

Find Canadian dollar rate information online

For all kinds of currency training, take advantage of online exchange rates focusing on the Canadian dollar to get skills in handling this regional currency.

I recommend: Tools like this one on MSN Money track the Canadian dollar relative to the U.S. version -- for analyzing the performance of the great Northern currency over time. Find out more about how the Canada dollar stacks up against world currencies at XE's online exchange, or get a pre-formatted set of rates for the Canadian dollar exchange rate at X-Rates.

Get more training options for uses of the Canadian dollar

Besides the large amount of scholastic programs in international business that will prepare learners to buy, use or trade the Canadian dollar, there is more from institutions teaching Forex and other currency principles for today's market.

I recommend: Find more courses with information about the Canadian dollar online at Training-Classes. Also check out Forex College options in New York for learning about the Canadian dollar and other international currencies.

Locate more resources for learning about Canadian dollar values

Other resources include informative tools for understanding and using Canadian currency in a financial accounting or other role, or helpful informative tracking of the currency related to current projects.

I recommend: The Bank of Canada website offers statistics and helpful info on the Canadian dollar. Articles like this one at Bloomberg.com offer more specific info on what's going on with Canadian money for looking at specific uses for it over a period of time.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  For any kind of Canadian dollar trading education or training, focus on what you really want to learn. Do you need to know about exchange rates or the theory of the dollar value? Look for specific forecasting skills that will help you in the currency markets.