Belize’s Fixed Exchange Rate: Why Our Dollar Holds Its Value
Introduction
When Belize released its new money design in 2025, some people asked, “Does this mean our dollar will lose value?”
The answer is no — and the reason is simple: Belize’s exchange rate is fixed and has been for decades.
But what does that mean — and why does it matter for you, as a traveler or Belizean?
Let me explain.
💱 What Is a Fixed Exchange Rate?
A fixed exchange rate means our currency is tied — or “pegged” — to another stable currency.
In Belize’s case, we’re pegged to the US Dollar, at:
1 USD = 2 BZD (source).
That rate doesn’t fluctuate like currencies in free-floating systems.
Whether you’re at the airport, in a market, or using a bank card — that’s the rate.
🧭 Why Belize Chose This System
We fixed our rate to:
- Keep prices stable
- Support trade and tourism
- Build trust in the Belizean dollar
Since most of our visitors (and many businesses) operate in USD, having a 2:1 rate makes things simple, reliable, and predictable.
This fixed rate is part of what’s known as a currency board-style system, which has historically helped Belize avoid wild currency swings (source).
💰 Will the New Money Design Affect That?
No.
The new currency features national heroes instead of the British monarch — but the value hasn’t changed.
Design = Identity
Value = Stability
This is a cultural update, not an economic reset.
As the Central Bank has made clear, these new notes carry the same legal tender status and face value as the older ones .
🏦 What Keeps the Belize Dollar Stable?
- The Central Bank of Belize oversees all monetary policy
- It holds foreign exchange reserves, primarily in USD
- It carefully manages money supply and inflation
- It steps in when needed to protect the peg
This structure — officially maintained by the Central Bank — has helped Belize weather global economic changes while preserving the 2:1 ratio (source).
Think of it as an anchor: even if global waters shift, Belize stays steady.
📈 Are There Any Risks?
Like any small economy, Belize is sensitive to global factors:
Fuel prices, import costs, and climate events can all have ripple effects.
But our monetary authorities have consistently affirmed their commitment to the peg and their ability to manage reserves to protect it.
✈️ What This Means for Travelers
- USD is accepted almost everywhere — but you’ll get change in BZD
- The 2:1 rate makes quick math easy
- You don’t need to worry about rate swings mid-trip
💡 Tip: Bring smaller denominations of USD if possible ($5s, $10s, $20s) — they’re easier to use in markets or remote areas.
📎 Want More?
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