Belize's Bank Notes: The Intriguing Story Of The $2 Bill

The Belize dollar (BZD) is the official currency of Belize and has been since 1978. The exchange rate is fixed at BZ$2 to US$1. The front of the 2 BZD note features a portrait of Queen Elizabeth II, while the back depicts Mayan Ruins of Belize. The Central Bank of Belize was established in 1982 and began producing banknotes a year later.

Belize dollar is the official currency

The Belize dollar (BZD) is the official currency in Belize and has been since 1978. It is divided into 100 cents and is usually abbreviated with the dollar sign $, or BZ$ to distinguish it from other dollar-denominated currencies. The Belize dollar is pegged to the US dollar at a fixed rate of BZ$2 to US$1.

The history of the Belize dollar dates back to 1825 when an imperial order-in-council introduced British sterling coinage into all British colonies, including British Honduras (now Belize). In 1885, bronze 1-cent coins were introduced, followed by silver 5, 10, 25, and 50 cents in 1894. In 1894, the government issued notes in denominations of 1, 2, 5, 10, 50, and 100 dollars. However, the production of 50 and 100-dollar banknotes ceased after 1928. In 1973, British Honduras was officially renamed Belize, and the following year, the first 100-dollar banknote was issued.

The Monetary Authority of Belize was established on November 1, 1976, and took over note issuance. On January 1, 1982, the Central Bank of Belize was established by the Central Bank of Belize Act No. 15, and began printing banknotes in 1983. The current BZD exchange rate as of July 23, 2024, is 1 BZD = 0.494087 USD.

The Belize dollar has unique security features, including a watermark, a windowed security thread, a see-through feature, novel numbering, and an intaglio over-foil feature, among others. The late Queen Elizabeth II appears on all banknotes issued by the Central Bank of Belize. In July 2023, it was decided that future Belizean dollar bills would not feature the portrait of King Charles III but would instead depict Belizean national heroes.

Exchange rate is BZ$2 to US$1

The Belize dollar (BZD) is the official currency of Belize, with the symbol BZ$. The exchange rate is hard-pegged to the US dollar at a fixed rate of BZ$2 to US$1. This means that one US dollar is worth two Belize dollars.

The Belize dollar has been the country's official currency since 1978, when it replaced the Spanish dollar. The Spanish dollar circulated in Belize, then known as British Honduras, from 1765 to 1825. In 1894, the government issued notes in denominations of 100, 50, 10, 5, 2, and 1 dollar. The 50 and 100-dollar banknotes ceased production after 1928. In 1973, British Honduras was renamed Belize, and the first 100-dollar banknote was issued the following year.

The Monetary Authority of Belize was established as the official printer of the country's currency until 1982, when the Central Bank of Belize was created. The Central Bank began printing banknotes in 1983.

The Belize dollar is tied to the US dollar by law at a fixed rate. However, in practice, the Belize dollar is accepted at a slight fluctuation, usually $2.0175 BZ for one US dollar. This is the case when purchasing a bank draft, for example.

On May 2, 2023, the Belize Central Bank instructed banks and financial institutions to accept US cash currency at the official rate of 2 Belize dollars for 1 US dollar. Prior to this, these institutions had been giving slightly less, BZ$1.982 in exchange for 1 US dollar in cash, claiming the difference as processing expenses and part of their non-interest income service. This had led to businesses in Belize being reluctant to accept US currency as they would lose money when depositing US cash.

Belize currency history

The Belize dollar (BZD) is the official currency of Belize, which was first issued in 1974. However, the country's currency history dates back much further.

Belize, formerly known as British Honduras, has used various currencies throughout its history, including the British Honduras dollar, British pounds, and Spanish dollars. The Spanish dollar was the currency in circulation in Belize between 1765 and 1825. In 1825, an imperial order-in-council was passed, introducing the British sterling coinage into all British colonies, including Belize. This order set the exchange rate between sterling and the Spanish dollar at $1 = 4s 4d, though the realistic exchange rate would have been closer to $1 = 4s 2d. As a result, the initiative was largely unsuccessful.

Remedial legislation was introduced in 1838, setting the correct rating of $1 = 4s 2d. However, by this time, sterling was well established in Belize, and the Spanish dollar had been barred from circulation. The British shilling, known locally as a "Maccaroni", was equal to one-quarter of a dollar, and the system was working satisfactorily.

In the mid-19th century, British Honduras experienced an international silver crisis, which drove the British currency out of circulation. As most imports were coming from New Orleans in the United States, a new currency was introduced based on the US dollar, bringing British Honduras into line with Canada. In 1885, 1-cent coins were issued, followed by higher denominations in 1894. This year also saw the first issue of banknotes by the government and a switch from the silver Guatemalan peso to the gold US dollar as the base for the currency, with $4.866 = £1.

When the United Kingdom abandoned the gold standard in 1931, the British Honduras dollar maintained its attachment to the US dollar. During World War II, British Honduras joined the sterling area, even though it maintained its fixed exchange rate with respect to the US dollar.

In 1949, when the British pound was devalued, it caused a sudden increase in the value of the British Honduran dollar relative to the pound. Protests led to a devaluation of the British Honduran dollar to 70 US cents (equal to 5 shillings sterling). The currency continued to fluctuate and devalue over the years, often in sympathy with the British pound. In 1978, the link to the British pound was abandoned, and the Belize unit was once again pegged to the US dollar at a fixed rate of BZ$2 = US$1. This rate still continues today, reflecting a 50% devaluation in relation to the original parity with the US dollar in 1885.

Belize currency and security features

The Belize dollar (BZD or BZ$) is the official currency of Belize. It is divided into 100 cents and is pegged to the US dollar at a fixed rate of BZ$2 to US$1.

Belizean banknotes come in denominations of $2, $5, $10, $20, $50, and $100, with the $100 bill colloquially known as a "blue buay" (blue boy). The front of the notes features local wildlife or prominent buildings in the country, while the reverse of every bank note features a portrait of Queen Elizabeth II of Britain, as Belize is a member of the Commonwealth.

The Belizean dollar bills have several security features designed to protect the integrity of the currency and make it difficult for counterfeiters to replicate. These include:

• A watermark of a jaguar for the $100 and $50 bills, and the "Sleeping Giant" sculpture by George Gabb for the $20, $10, $5, and $2 bills. The watermark also includes the value of the bill, spelled out in capital letters.
• A thin metal security thread embedded in the paper, with the word "Belize" printed on it, alternating in sequence with its inversion.
• A see-through window with a different image for each denomination: the head of a tapir on the $20, a clock steeple on the $10, a sailing ship on the $5, and a Maya stella on the $2.
• A raised feel to the print, achieved through intaglio printing, which gives the bills an embossed texture.
• Serial numbers with digits that gradually increase in size, with the same number printed vertically on the left side of the bill.
• A micro-print on the back of the bill, in the border immediately below the Central Bank of Belize, with minute letters that are almost invisible to the naked eye.
• A response to ultraviolet light: the paper of real currency is made of cotton fibres, which is almost pure cellulose, and it is UV dark, except for treated areas that fluoresce with the dollar denomination as a number.

In addition to these features, the Central Bank of Belize has also incorporated new security measures that are not publicly disclosed.

Belize currency and exchange

The Belize dollar (BZD) is the official currency of Belize and has been since 1978. It is divided into 100 cents and is usually abbreviated with the dollar sign $, or BZ$ to distinguish it from other dollar-denominated currencies. The Belize dollar is pegged to the US dollar at a fixed rate of BZ$2 = US$1.

The history of the Belize dollar can be traced back to 1825, when an imperial order-in-council introduced British sterling coinage into all British colonies, including British Honduras (as Belize was then known). This set the exchange rate between sterling and the Spanish dollar at $1 = 4s 4d. However, the realistic exchange rate would have been $4.80 = £1, making the initiative a failure. In 1838, new legislation introduced the correct rating of $1 = 4s 2d, but by then, sterling was already well-established in these territories, and the Spanish dollar had been barred from circulation.

In 1885, bronze 1 cent coins were introduced, followed by silver 5, 10, 25, and 50 cent coins in 1894. In 1894, the government introduced notes in denominations of 1, 2, 5, 10, 50, and 100 dollars. In 1973, British Honduras was renamed Belize, and the first 100-dollar banknote was issued the following year. The Monetary Authority of Belize was established in 1976 and took over note issuance. The Central Bank of Belize was established in 1982 and began printing banknotes in 1983.

Today, the Belize dollar is widely accepted throughout the country, and ATMs in Belize usually accept foreign cards. Many businesses also accept US dollars, and credit cards such as MasterCard, Visa, and AMEX are widely accepted. However, it is important to note that Belize law restricts the amount of foreign currency that can be brought into the country. Visitors must declare any amounts exceeding US$5,000 in cash, checks, or other negotiable instruments.

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