Belize Marks Five Decades of Stability with US Dollar Peg

Belize is marking 50 years of its fixed exchange rate with the U.S. dollar, which was set at BZ$2 to US$1 on May 11, 1976.

The Central Bank of Belize said this peg has provided a familiar basis for calculating the cost of U.S. goods, overseas purchases, and travel for Belizeans.

Central Bank Chief Economist Emory Ford explained that the peg's durability depends on the institutions supporting it, citing the evolution of reserve requirements over time.

The statutory minimum fell from 100% to 40% under the 1976 Monetary Authority Ordinance and has remained at that level since the Central Bank began operating in 1982.

Government Senator Christopher Coye reflected on the uncertainty faced by earlier generations during changes to Belize's currency arrangements, saying 'they didn't have income certainty. They didn't have savings certainty. They didn't have wage certainty.'