major currencies were floating against the United States dollar. The Canadian dollar has had a floating exchange rate ever since. Duguay, a former Deputy Governor of the Bank of Canada, has stated that a flexible exchange rate favours a trading nation such as Canada, which produces commodities and also manufactured goods. He argues that a flexible exchange rate facilitates economic adjustment by sending important price signals to producers and consumers, encouraging prompt adjustments to changing economic circumstances. It also permits the Bank to adopt monetary policies which focus on controlling domestic inflation. Current designs for coins and notes Coins Canada's current coinage dates to 1937, when the Mint introduced new designs for the coins. The new coins replaced the old designs which dated back to 1858, when the Province of Canada introduced its first coinage. The 1858 coinage had featured the monarch on the obverse of all coins, with a wreath of maple leaves surmounted by a crown on the reverse. The 1937 re-design continued to feature the monarch on the obverse of all coins, but introduced new patterns for the reverse of each coin: One-cent (penny): two maple leaves; Five-cent (nickel): a beaver; Ten-cent (dime): the schooner Bluenose; Twenty-five cent (quarter): a caribou; Fifty-cent (half-dollar): Canadian coat of arms. These designs were all the work of Emanuel Hahn. With the exception of the withdrawal of the penny, these designs continue to be the basic features of Canadian coinage. This series of coins was augmented in 1987 by the introduction of a new one-dollar coin, featuring a loon on the reverse, designed by Robert-Ralph Carmichael. The coin quickly became known as the "loonie", which in turn has become a nickname for the Canadian dollar generally. The loonie was followed by the introduction of a two-dollar coin in 1996, designed by Brent Townsend. The two-dollar coin quickly acquired its own nickname, the "toonie". The effigy of the monarch on the coins was originally based on dies provided by the Royal Mint in London, first for King George VI and then for Queen Elizabeth II. The effigy of George VI was designed by Humphrey Paget. However, given the length of the Queen's reign, four different versions of her effigy have been used, updated with her age: 1953, 1965, 1990 and 2003. The 1953 and 1965 effigies were designed for the Royal Mint, by British artists: Mary Gillick and Arnold Machin. The Canadian