May 11, 2026
Belize is commemorating 50 years since the Belize dollar was pegged to the United States (U.S.) dollar at a fixed rate of BZ$2 to US$1. Adopted on 11 May 1976, this fixed currency rate policy has been a cornerstone of national development, serving as a stable monetary anchor for trade, investment, pricing, and financial planning. The fixed exchange rate arrangement places Belize among a small group of open economies that have sustained a long-standing currency peg even through decades of shifting global economic conditions.
Commenting on the anniversary, Governor of the Central Bank of Belize Kareem Michael stated, “For half a century, the BZ$2 to US$1 peg has been more than a policy. The Central Bank’s commitment to this peg has protected national purchasing power and provided a reliable environment for investment. We celebrate this milestone by reaffirming our mandate to safeguard the value of our currency as the foundation for Belize’s continued growth.”
Belize’s relationship with the U.S. dollar predates 1976. As far back as 1894, the colony then known as British Honduras first aligned its currency one-to-one with the U.S. dollar to reflect growing trade patterns with the United States. While this alignment was interrupted in 1949 by a peg to the British pound sterling, the 1976 decision to fix the rate at BZ$2 to US$1 marked a return to the U.S. dollar peg. This move followed a period of externally imposed exchange rate volatility when currency reserves were held in British pounds and successive devaluations of sterling negatively impacted the value of the Belize dollar.
Over the past five decades, the fixed exchange rate has been supported by institutional discipline, prudent reserve management, and macroeconomic policies aligned with the system’s requirements. While Belize has faced external shocks, including global financial disruptions, tourism downturns, and natural disasters, the peg has provided the predictability required for long-term economic resilience.
To mark the anniversary, the Central Bank is releasing an informative video that traces Belize’s monetary history and the role of exchange rate stability in the country’s economic development. Additional activities are planned for later this year.
- ENDS -