Belize's Currency: The Belize Dollar

The official currency of Belize is the Belize dollar (BZD), which is pegged to the US dollar at a rate of BZ$2 per US$1. US dollars are also widely accepted in Belize, and you can use them to pay for goods and services without having to exchange them for Belize dollars first. However, you will usually receive change in Belize dollars or a mix of Belize and US currency. While US dollar bills are accepted everywhere in Belize, US coins are not.

The Belize dollar is the official currency of Belize

Belizean coins are available in one cent, five cents, 10 cents, 25 cents (or a "shilling"), 50 cents, and a $1 coin. The 25-cent piece is called a shilling. US dollars (bills, not coins) are accepted everywhere in Belize, although change may be received in Belizean money, or a mix of Belizean and US money. There is no need to exchange US currency for Belize dollars at banks, and if you do, you will lose a percent or two in conversion fees.

Prices in Belize are usually expressed in Belize dollars, but American currency is widely accepted. US dollars are particularly useful for paying for hotels, resorts, and tours, which are often priced in US dollars. Belize charges a departure tax of $39.25 for non-locals, which must be paid in American currency.

It is important to note that Belizean dollars are difficult, if not impossible, to exchange outside of Belize, even in neighbouring countries like Mexico and Guatemala. Therefore, travellers are advised to convert all remaining Belizean dollars before departing the country.

The Belize dollar is pegged to the US dollar at a rate of BZ$2 per US$1

The Belize dollar is the official currency in Belize. It is abbreviated as BZ$ to distinguish it from other dollar-denominated currencies. The Belize dollar is pegged to the US dollar at a rate of BZ$2 per US$1. This means that the value of the Belize dollar is fixed relative to the US dollar, and one US dollar is always worth two Belize dollars. This peg has been in place for over 25 years and is reflected in the prices of goods and services in Belize, which are often quoted in both currencies.

The history of the Belize dollar's peg to the US dollar dates back to the 19th century when British Honduras, as Belize was then known, operated using the British sterling monetary system. However, in the mid-1800s, an international silver crisis led to the country's currency being driven out of circulation by the silver peso of neighbouring Guatemala. As most imports were coming from the United States at the time, a new currency was introduced based on the US dollar, bringing British Honduras in line with Canada. This marked the point at which the currency history of British Honduras diverged from that of the rest of the British West Indies.

Over time, the Belize dollar has undergone several devaluations and revaluations relative to the US dollar. In 1949, when the British pound was devalued, the Belize dollar's value increased relative to the pound since it was pegged to the US dollar. This caused protests and led to the devaluation of the Belize dollar to 70 US cents. Further devaluations occurred, such as in 1967 when the Belize dollar devalued in sympathy with the British pound to 60 US cents. The current peg of BZ$2 per US$1 was established in 1978 and has been maintained since then.

The pegged exchange rate between the Belize dollar and the US dollar has several implications for travellers to Belize. US dollars are widely accepted in Belize, especially in tourist destinations. However, change may be given in Belize dollars at the prevailing exchange rate. ATMs in Belize dispense cash in Belize dollars, and it is recommended to use local ATMs instead of exchanging cash at banks, as banks often offer less favourable exchange rates. While the Belize dollar is accepted at the official exchange rate of BZ$2 per US$1, money changers at the borders with Mexico and Guatemala operate on a free-market system, offering exchange rates based on demand.

US dollars are accepted everywhere in Belize

The official currency of Belize is the Belize dollar (BZD), which is pegged to the US dollar at a rate of BZD$2 per US$1. However, US dollars are widely accepted in Belize, and travellers can use both currencies interchangeably at most businesses. This includes bars, restaurants, shops, hotels, and tour operators.

While the Belize dollar is the official currency, US dollars are so commonly used that you will often find prices quoted in both currencies. In general, higher prices, such as for real estate, hotels, and tours, are quoted in US dollars, while prices at supermarkets, most restaurants, and shops are quoted in local Belize dollars.

It is important to note that only US dollar bills are accepted in Belize, and US coins cannot be used. Additionally, it is recommended to bring smaller US dollar bills, as $50 and $100 bills may be difficult or impossible to cash in smaller villages or shops. It is also important to ensure that your bills are in good condition, as Belizean banks and businesses may not accept bills with any marks or tears.

While US dollars are widely accepted, it is worth noting that Belize dollars are typically required for smaller merchants, villages, and when using cash to pay for taxis, tipping, or purchasing smaller items. ATMs in Belize dispense money in Belize dollars only, and it is advisable to have some local currency on hand for such transactions.

Overall, travellers to Belize can expect that US dollars will be accepted in most places, but having a mix of US dollars and Belize dollars will ensure a smooth experience when paying for goods and services.

Belize dollars are not accepted outside of Belize

While in Belize, you can use US dollars almost everywhere, including in bars, restaurants, and shops, and get Belize dollars in return. However, US coins are not accepted in Belize. It is recommended to bring smaller US bills, such as $1, $5, $10, and $20, as larger bills may be hard to cash in smaller villages or shops. Additionally, make sure your bills are in good condition, as banks in Belize may no longer accept bills with any marks or tears.

ATMs in Belize dispense money only in Belize dollars and usually charge a fee for international card withdrawals. It is advisable to inform your bank before travelling to ensure your card will work in Belize.

If you have other currencies, such as Canadian dollars, Mexican pesos, UK pounds, or euros, it is best to exchange them into US dollars before arriving in Belize, as the exchange rates for other currencies are typically unfavourable.

When leaving Belize, you can exchange any remaining Belize dollars back into US dollars at Atlantic Bank at the international airport. However, the Belize dollar is challenging, if not impossible, to exchange outside of Belize, even in neighbouring countries like Mexico and Guatemala, except at border crossings. Therefore, it is crucial to plan and budget accordingly to avoid being left with excess Belize currency that cannot be easily exchanged elsewhere.

Banks in Belize charge a fee for exchanging US dollars to Belize dollars

The official currency of Belize is the Belize dollar (BZD), which is typically pegged at a rate of BZ$2 per US$1. While US dollars are accepted everywhere in Belize, you will receive change in the local currency. It is important to note that only US dollar bills are accepted in Belize, not coins.

Although there is no need to exchange US dollars for Belizean currency, banks in Belize do offer this service. However, they may charge a fee for exchanging US dollars to Belize dollars, and the exchange rate may be less favourable than the official rate. For example, banks and ATMs in Belize may exchange at a rate of BZ$1.98 or less per US$1. Therefore, it is recommended to use US dollars or pay by card during your stay in Belize, rather than exchanging currency.

ATMs in Belize dispense money only in Belize dollars and are typically found in major tourist towns and urban centres. It is important to note that your bank will likely charge a fee for using ATMs abroad, and there may be an additional fee charged by the local Belize bank. Additionally, there may be withdrawal limits, usually around BZ$500 per day.

Credit cards are widely accepted in Belize, with Visa and MasterCard being the most common. However, some establishments may include a surcharge of 2-5% for credit card use. It is recommended to notify your credit card company before travelling to avoid any issues with foreign transactions.

Frequently asked questions