Belize Dollar: Where It's Spent

The Belize dollar (BZD) is the official currency of Belize, which is often abbreviated as BZ$ to distinguish it from other dollar-denominated currencies. It is divided into 100 cents and has been tied to the US dollar since 1978, with a fixed exchange rate of BZ$2 to US$1. The Belize dollar was first issued in 1974, replacing the British Honduras dollar. Belize is the only country that uses the Belize dollar as its official currency.

The Belize dollar is the country's official currency

The Belize dollar is pegged to the US dollar at a fixed exchange rate of BZ$2 to US$1. This means that two Belizean dollars will always be equal to one American dollar. This fixed exchange rate makes it convenient for travellers, as they don't need to worry about calculating exchange rates. Additionally, American currency is widely accepted in Belize, and many businesses accept US dollars. However, it is important to note that BZ dollars are generally worthless outside of Belize, and it can be challenging to exchange them for other currencies once you leave the country.

The Central Bank of Belize, established in 1982, manages the nation's foreign reserves and issues its currency. Belize's inflation rate was estimated at 0.6% in 2019, and its GDP growth rate was 2.5%. The economy of Belize is highly reliant on tourism and agriculture, with exports including sugar, bananas, citrus fruits, and crude oil.

It is pegged to the US dollar at a fixed rate

The Belize dollar (BZD) is the official currency of Belize. It is pegged to the US dollar at a fixed rate of BZ$2 = US$1. This means that one Belize dollar is always equivalent to half of a US dollar. The fixed exchange rate between the two currencies has been in place since 1978.

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 (now Belize). However, in the middle of the 19th century, British Honduras briefly returned to the gold standard due to the international silver crisis of 1873. 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 1931, when the United Kingdom abandoned the gold standard, British Honduras maintained its attachment to the US dollar. During World War II, British Honduras joined the sterling area while still maintaining its fixed exchange rate with the US dollar. In 1949, the British pound was devalued, causing a sudden increase in the value of the British Honduran dollar relative to the pound. This led to protests and a subsequent devaluation of the British Honduran dollar to 70 US cents.

Following another devaluation of sterling in 1967, the British Honduran dollar again devalued in sympathy to 60 US cents. Finally, in 1978, the link to the British pound was abandoned, and the Belize dollar was once again pegged to the US dollar at the current fixed rate. This rate reflects a 50% devaluation in relation to the original parity with the US dollar in 1885.

Belize dollars are rarely accepted outside of the country

The Belize dollar (BZD) is the official currency of Belize, which was first issued in 1974. It is divided into 100 cents and has been tied to the US dollar since 1978, with a fixed exchange rate of BZ$2 to US$1. While the US dollar is widely accepted in Belize, Belize dollars are rarely accepted outside of the country.

Belize dollars are generally worthless outside of Belize, and the few places that might change them, such as foreign exchange bureaus abroad, will offer little for them. As such, visitors with US dollars do not need to worry about changing their money into local BZ dollars, as it is not a favourable exchange.

Belize law allows individuals to bring a maximum of US$5,000 into the country, regardless of form (cash, cheques, etc.). All visitors must declare their total currency holdings upon entering the country if they exceed this amount. Violators may be arrested and/or fined triple the amount of any undeclared funds.

It can be very difficult to exchange Belizean dollars for other currencies once outside the country. Travellers are advised to convert all remaining Belizean dollars before departing Belize.

US dollars are widely accepted in Belize

The Belize dollar (BZD) is the official currency of Belize, but US dollars are widely accepted throughout the country. Belize has a thriving tourism industry, and many tourist destinations will accept US dollars. While the official exchange rate is pegged at 1 USD to 2 BZD, some businesses may offer a slightly more favourable rate of 2.01 or 2.05 BZD for 1 USD.

US dollars are so commonly accepted in Belize that visitors with US currency are often advised against exchanging their money for Belize dollars. This is partly because Belize dollars are generally worthless outside of Belize, and partly because visitors will usually be given Belize dollars in change when paying with US dollars.

Belize was a British colony until it gained independence in 1981, and the Belize dollar was first issued in 1974. The country's currency was initially pegged to the British pound, but in 1931, when Britain abandoned the gold standard, the Belize dollar became pegged to the US dollar. Since 1978, the exchange rate has been fixed at 1 USD to 2 BZD.

While US dollars are widely accepted in Belize, it's worth noting that the country has strict currency controls. Visitors to Belize must declare if they are bringing more than $5,000 USD into the country, and failure to do so can result in arrest and fines.

Belize's economy is highly reliant on tourism and agriculture

Belize is a small, developing economy that is primarily based on agriculture, tourism, and services. The country has a land area of 8,867 square miles and a population of 387,879 as of 2017, making it the least densely populated nation in Central America. Belize's economy is vulnerable to external market changes, and it continues to experience a high unemployment rate of about 10%.

Agriculture is the most critical industry in Belize's economy, employing well over one-third of the country's labour force. Sugarcane is the country's most important agricultural crop, accounting for approximately 50% of all export earnings and occupying more than half of the arable land. Other important agricultural export items include bananas, grapefruits, oranges, and papayas. Banana production, for instance, accounted for 16% of total exports in 1999.

Tourism is the second most important sector in Belize's economy and has experienced significant growth in recent years. The country has numerous tourist destinations, including the Belize Barrier Reef, the world's second-largest barrier reef, and the Great Blue Hole, the world's largest underwater sinkhole. The safe waters and abundant natural attractions, such as jungles and wildlife reserves, make Belize a popular destination for swimming, windsurfing, boating, and diving.

In addition to tourism and agriculture, construction and the production of industrial minerals have also played a more significant role in Belize's economy in recent years.

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