TORONTO — Canada will sell more of its long-vintage car notes as part of a government-commissioned study to identify ways to bolster its currency.
The study, which is scheduled to be completed in September, will explore the use of physical coins and other technologies to support the Canadian dollar.
The aim is to boost circulation and bolster the value of Canadian currency, Finance Minister Jim Flaherty said Tuesday.
The study, commissioned by the Canada Revenue Agency, will examine the feasibility of using physical coins to facilitate the exchange of currency.
The idea of a physical currency, said Flaherty, was something that was suggested in the 1950s and ’60s, but that was never realized.
The Canada Post Corp. issued about $2.6 trillion worth of currency notes and coins in the 1960s and 1970s, and has since sold about $6.5 trillion worth.
Inflation-adjusted, the value added by the Canadian currency over the last year is roughly $3.2 trillion.
The government estimates that in the future, the Canadian economy will grow by more than 1% annually.
Canada has sold about 12 billion of its notes and car notes since the 1990s, according to the Canadian Bankers Association.
The Bank of Canada has said it expects to sell about $300 billion worth of notes and cars annually.
The government has not yet determined how the notes will be exchanged for the notes and the car.
It said it will announce more details later this month.
The Canadian Automobile Association and the Canadian Automotive Manufacturers Association both welcomed the idea of using a physical coin as a method of exchange.
In a statement, the associations said the coins have long been a way for consumers to spend cash without worrying about the physical safety of their cash.
It’s a fantastic way to get a dollar and a cent into the hands of Canadians.”