20 Dollars – Canada

In 2002, the Canadian dollar, often colloquially called the "loonie," was in the midst of a sustained period of historic weakness against the US dollar, a defining feature of the era's currency situation. Having traded below 70 cents US for much of the late 1990s, it began a tentative recovery but remained subdued, averaging approximately 63.7 cents US for the year. This multi-year low was driven by several structural factors, including lower commodity prices, a significant interest rate differential that favored US investments, and a general market perception of Canada's lower productivity growth compared to its southern neighbor.

The economic environment was one of cautious global recovery following the dot-com bust and the 9/11 attacks, with the Bank of Canada maintaining a accommodative monetary policy stance. Governor David Dodge, having taken office in 2001, was focused on supporting growth while keeping inflation within the 1-3% target range. The weak currency provided a notable boost to Canada's export-oriented sectors, particularly manufacturing and automotive industries, by making their goods more competitive in the crucial US market. However, it also increased the cost of imports, putting upward pressure on prices for consumers and businesses reliant on foreign goods and capital equipment.

By the end of 2002, the loonie had begun a more pronounced ascent, closing the year near 64 cents US and setting the stage for a dramatic, commodity-driven rally that would define the subsequent decade. This shift was prompted by early signs of a booming global demand for resources, particularly energy from Alberta's oil sands, which would soon reposition the Canadian dollar as a petro-currency. Thus, 2002 served as a pivotal transition year, marking the end of the prolonged trough and the beginning of a new era of currency strength linked to rising commodity super-cycles.