Belize marks fifty years of the two-to-one exchange rate with the US dollar 

Belize has marked 50 years of keeping its dollar at a fixed exchange rate of two Belize dollars to one US dollar. The Central Bank brought together representatives from government, business and the financial sector yesterday to reflect on how that rate has served the country since it was adopted in 1976.  Moderator Dr. Dylan Vernon opened the event by noting that the dollar’s predictable value matters when Belizeans do business. It gives people confidence in what their money is worth and helps businesses plan, price their goods and trade.

Dylan Vernon, Executive Director, BELPRI: “While we talk about money, we know that confidence in money is not automatic. It must be built, it must be maintained, it must be sustained over time. There are four questions that come to mind. Why do we place such importance on confidence in money? What does monetary stability allow Belize to do to build ? What decisions come or become possible when Belizeans believe the value of money will hold, will be steady? And what does it mean for beliefs to maintain the same exchange commitment for 50 years? And perhaps most importantly, these questions remind us that stability, monetary stability, it’s not something a country like Belize inherits. It is something a country like Belize sustains.” 

Deputy Prime Minister Cordel Hyde also spoke at the event. He pointed to Belize’s stability through decades of tragedies and upheaval around the world and said the country has continued to hold its ground.

Cordel Hyde, Deputy Prime Minister of Belize: “There is something about the regard with which we hold our Central Bank. It’s almost in irreverence. I came out of my sick bed today just because it’s a Central Bank thing. I know the journey has not always been easy. Over the past five decades, Belize has weathered many challenges from economic shocks and financial crises to natural disasters and the once in a hundred years COVID-19 pandemic. More recently, we have faced unprecedented supply chain disruptions, inflationary pressures, and global uncertainty resulting from the wars in Eastern Europe and in the Middle East. Through these difficult episodes and trying times, confidence in our currency and financial system has endured. That resilience speaks not only to the strength of our institutions, but also to the determination and perseverance of our Belizean people. Today, the Belize dollar peg stands as more than economic policy. It has become a symbol of prudence, resilience, and continuity. It reflects our nation’s commitment to responsible economic stewardship and demonstrates that stability is itself a strategic national asset. As we celebrate this achievement, we must also look ahead. The next 50 years will present new opportunities and new challenges, advances in technology, digital transformation, greater financial inclusion, innovation, and increase in global competition will continue to shape our economy and our society. As Belize embraces these changes and these struggles, the exchange rate peg will remain an important anchor. It will continue to provide stability while challenging us to adapt, evolve and grow.”

The Belize dollar was pegged to the US dollar on May 11, 1976. The rate remains BZ$2 to US$1 today.