10 Dollars (Royal Canadian Mounted Police) – Canada

In 2020, Canada's currency, the Canadian dollar (CAD), was dominated by the profound economic shock of the COVID-19 pandemic. The year began with the loonie trading in a relatively stable range near 77 US cents. However, as the global crisis escalated in March, a simultaneous collapse in oil prices—due to a Saudi-Russia price war and plummeting demand—and a worldwide dash for safe-haven US dollars triggered a sharp depreciation. The CAD plunged to multi-year lows, briefly touching approximately 69 US cents in mid-March, reflecting Canada's dual vulnerability as a commodity exporter and a nation integrated into global risk sentiment.

The Bank of Canada (BoC) responded with unprecedented monetary policy measures to stabilize financial markets and support the economy. It slashed its benchmark interest rate three times in rapid succession, from 1.75% to 0.25%, effectively reaching the effective lower bound. Complementing this, the BoC launched large-scale asset purchase (quantitative easing) programs, including provincial and corporate bonds, which expanded its balance sheet dramatically. These actions, alongside massive federal fiscal support, provided a backstop and helped the CAD recover from its lows. By year's end, a weakening US dollar and a tentative recovery in oil prices and global risk appetite pushed the loonie back to around 78 US cents.

Overall, 2020 was a year of extreme volatility that tested the resilience of Canada's financial system. The currency's trajectory mirrored the pandemic's phases: a crisis-driven selloff, followed by a stabilization and recovery fueled by aggressive policy support. While the CAD ended the year close to where it started in nominal terms, the journey highlighted its enduring sensitivity to commodity prices, global risk sentiment, and the critical role of central bank intervention during a period of profound economic uncertainty.