The Canadian dollar is a major currency used in global financial markets. It is used to trade goods and services, as well as to invest in financial instruments such as stocks, bonds, and commodities. The Canadian dollar serves as a hedge against economic and political instability, as it is seen as a safe-haven currency. It is also used as a hedge against currency fluctuations. By investing in the Canadian dollar, investors can protect their assets from changes in the value of other currencies. Additionally, the Canadian dollar is often used in international transactions and investments, providing more liquidity and stability to the market.