What is Belize Dollar (BZD)?

Belize Dollar (BZD)

The Belize Dollar (BZD) is the national currency of Belize, established as the legal tender for all transactions in the country. It replaced the British Honduras Dollar in 1973, with a fixed exchange rate of 2 BZD to 1 USD, which has helped stabilize its value in the international market.

The currency is divided into 100 cents, with coins available in denominations of 1, 5, 10, 25 cents, and 1 dollar, while banknotes are issued in denominations of 2, 5, 10, 20, 50, and 100 dollars. The design of the banknotes features prominent historical figures and national symbols, reflecting Belize's rich cultural heritage.

The Belize Dollar is issued and regulated by the Central Bank of Belize, which has the primary responsibility for maintaining monetary stability and overseeing the financial system in the country. The bank actively monitors inflation and implements policies to manage the money supply, ensuring that the currency retains its purchasing power.

In everyday transactions, the Belize Dollar is widely accepted in both cash and electronic forms, facilitating trade and commerce across the nation. Tourists visiting Belize can easily exchange foreign currencies, particularly the US Dollar, which is also commonly used in the country.

While the Belize Dollar is pegged to the US Dollar, fluctuations in the exchange rate can impact its value, particularly in relation to international markets. As such, individuals and businesses that engage in foreign trade must remain aware of these changes to manage their financial risks effectively.

Overall, the Belize Dollar plays a crucial role in the economy of Belize, serving as a symbol of national identity and a vital instrument for economic transactions. Its continued stability is essential for fostering confidence among consumers and investors alike.