In the 2018 budget the government announced that it will propose legislation to give it the power to remove legal tender status from banknotes that are no longer issued by the Bank of Canada, something it cannot do now.
If the changes are approved by Parliament, legal tender will officially be removed from the 1; 2; 25; 500 and 1,000 dollar notes. These notes will be exchangeable at the Bank of Canada.
Older notes of 1; 2 and 1,000 dollars; as well as those of 25 and 500 dollars have a substantial premium in the numismatic market.
Courtesy: Bank of Canada, and Pieter Liem, Canada Currency Centre.
Source: Bank of Canada.
©2018 Monetary Research Institute.
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