Us Dollars To Belizean Dollars: Understanding The Exchange Rate

The Belize Dollar (BZD) is the official currency of Belize, and it is hard-pegged to the US Dollar (USD) at a fixed rate of BZ$2 to US$1. This means that the exchange rate between the two currencies is always guaranteed to be 1 USD to 2 BZD. While the exchange rate is fixed by law, in practice, the BZ Dollar is accepted at a slight fluctuation, usually $2.0175 BZ for 1 US Dollar. This rate typically applies when purchasing a bank draft, for example.

The mid-market exchange rate

While the mid-market rate is often seen as the fairest rate, it is important to note that individuals and businesses will not receive this rate when exchanging currency. The mid-market rate is a reference point, and the actual exchange rate that you receive will depend on various factors, including the amount of currency being exchanged, the location, and the service being used to perform the exchange.

Additionally, it is worth noting that the Belize Dollar is officially pegged to the US Dollar at a fixed rate of 2 BZD to 1 USD. This means that the Belize Dollar is directly linked to the value of the US Dollar, and its exchange rate is managed by the country's central bank. As a result, the exchange rate between the two currencies may not fluctuate as much as it would if the Belize Dollar were floating freely on the global market.

When exchanging currency, it is always a good idea to shop around and compare the rates offered by different banks and exchange services. By doing so, you can ensure that you are getting the best possible rate for your transaction. Additionally, keep in mind that exchange rates can fluctuate, so it is a good idea to check the current mid-market rate before performing any currency exchange.

Currency conversion in Belize

The official currency of Belize is the Belize Dollar (BZD), which is hard-pegged to the US dollar at a fixed rate of BZ$2 to US$1. This means that the exchange rate is always set at 1 US dollar to 2 Belize dollars.

Exchanging Currency

If you are visiting Belize, you may not need to exchange your US dollars into Belize dollars. Many businesses in Belize accept US dollars, and ATMs usually accept foreign cards. However, if you do need to exchange currency, you can do so at most banks and hotels.

It is worth noting that there is a lively parallel informal market, where you may get a slightly better rate, with BZ$2.05 for US$1. However, this is not always reliable, and some sources advise against it.

Sending Money

If you are sending money between the US and Belize, be aware that you will not get the mid-market exchange rate. Banks and money transfer services will offer a different rate, which includes a markup to make a profit. This rate can vary between providers, so it is worth shopping around to find the best deal. Online transfer services often offer better rates than traditional banks.

Currency Conversion Tools

There are several online tools available to check the current exchange rate between the US dollar and the Belize dollar, such as Wise and Xe Currency Converter. These tools can also be used to convert between the two currencies. Simply enter the amount you want to convert, and the tool will calculate the equivalent amount in the other currency based on the current exchange rate.

These currency converters also provide historical exchange rate data, allowing you to see how the rate has changed over time. This can be useful if you are tracking exchange rates or need to make a conversion at a specific rate.

Currency conversion history

The Belize Dollar (BZD) is the official currency of Belize. The exchange rate is hard-pegged to the US dollar at a fixed rate of BZ$2 to US$1.

The Belizean dollar is tied to the US dollar at a fixed rate of Two Belize Dollars for One US Dollar. However, in practice, the BZ Dollar is accepted at a slight fluctuation, usually $2.0175 BZ for one US Dollar. This rate is used 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. Previously, these institutions had been giving 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 led to businesses in Belize being reluctant to accept US currency, as they would lose money when converting it into Belize dollars.

The buying rate for all other US dollar-denominated monetary instruments remains unchanged at BZ$1.982, including remittances and incoming wire transfers.

Currency exchange in banks vs. freelance money changers

The Belize dollar (BZD or BZ$) is the official currency of Belize. The exchange rate is hard-pegged to the US dollar at a fixed rate of BZ$2 to US$1. This means that two Belizean dollars will always equal one American dollar.

Currency can be exchanged at most banks and hotels in Belize. Additionally, many businesses accept US dollars, and ATMs in Belize usually accept foreign cards.

However, visitors arriving by land from Mexico or Guatemala will likely encounter freelance money changers, sometimes called "peseros". These money changers typically offer a more favourable exchange rate compared to banks and do not require customers to fill out any paperwork. They are, however, unlicensed and should be approached with caution.

Licensed money changers, on the other hand, will require customers to provide personal information and fill out forms. While banks and hotels are more secure options for exchanging currency, they may offer less competitive exchange rates than freelance money changers.

It is worth noting that Belize has strict currency controls. For example, individuals are allowed to bring a maximum of US$5,000 into the country, and the total sum of money must be declared to the Belize Customs Authority. Failure to do so can result in arrest and fines.

Therefore, when exchanging currency in Belize, it is important to carefully consider the benefits and risks associated with both banks and freelance money changers. While banks may be more secure and regulated, freelance money changers can offer better exchange rates and more convenience. Ultimately, the decision depends on the individual's priorities and comfort level with risk.

Legal tender in Belize

The official currency of Belize is the Belize Dollar (BZD), which is hard-pegged to the US dollar at a fixed rate of BZ$2 to US$1. This means that the Belizean dollar is a legal tender that is tied to the US dollar, and its value is directly linked to the US currency.

The exchange rate between the two currencies is BZ$2.02 for US$1, although in practice, the Belize Dollar is accepted at a slight fluctuation, usually around BZ$2.0175 for US$1. This rate applies when purchasing a bank draft, for example. It is important to note that the Belizean dollar is generally worthless outside of Belize, and it is advised to keep foreign exchange outside of the country in a bank in the US, Canada, or Europe.

The Belize Central Bank has instructed banks and financial institutions to accept US cash currency at the official rate of BZ$2 for US$1. However, for some time, these institutions were giving slightly less, BZ$1.982 in exchange for US$1 cash, claiming the difference as processing expenses. This led to businesses in Belize being reluctant to accept US currency as they would lose money when depositing US cash. As a result, the buying rate for other US dollar-denominated monetary instruments, such as remittances and incoming wire transfers, remains unchanged at BZ$1.982.

Belize law allows travelers entering the country to bring a maximum of US$5,000 per adult individual, in cash, checks, or negotiable instruments. This amount must be declared on the Disembarkation Card before presenting it to the Belize Customs Authority at all air, sea, or land entries. Failure to declare currency or financial instruments exceeding this value can lead to arrest and fines.

The Belizean dollar is printed by the British firm Thomas De La Rue Ltd, and all local banknotes feature an image of Queen Elizabeth II on the front. Belize is a member of the British Commonwealth and has King Charles III as its Head of State.

Frequently asked questions