Belize dollar facts for kids

Quick facts for kids Belize dollar
Obverse of the 2003 banknote series
ISO 4217 Code	BZD
User(s)	Belize
Inflation	2.8%
Source	The World Factbook, 2007 est.
Pegged with	United States dollar
Subunit
1⁄100	cent
Symbol	$
Coins	1, 5, 10, 25, 50 cents, $1
Banknotes	$2, $5, $10, $20, $50, $100

The Belize dollar is the official money used in Belize, a country in Central America. Its special code is BZD. You'll usually see it written with the dollar sign $, or sometimes BZ$ to show it's specifically the Belize dollar and not another country's dollar.

It's split into 100 smaller parts called cents. The Belize dollar is officially connected, or "pegged," to the United States dollar. This means that 2 Belize dollars are always worth 1 US dollar.

History of Belize's Money

The story of the Belize dollar is quite interesting. For a long time, Belize was known as British Honduras. Its money system changed a lot over the years.

Early British Money

Back in 1825, the British government wanted all its colonies, including British Honduras, to use British money like the pound. They tried to set a value between the British pound and the Spanish dollar, which was also used.

However, the exchange rate they set wasn't quite right. This made it hard for the new system to work well. Later, in 1838, they tried to fix this problem with a new law.

Switch to US Dollar Basis

In the mid-1800s, British Honduras used the British money system, similar to Jamaica. But after a big silver crisis around the world in 1873, the silver peso from nearby Guatemala became more common. This pushed the British money out.

To bring British Honduras back to a stable money system, and because many goods came from the United States, a new currency was created. This new money was based on the US dollar. This made British Honduras's money similar to Canada's at the time.

In 1885, the first 1 cent coins were made. Then, in 1894, more types of coins and the first banknotes were issued. This was also when the currency officially switched from being based on the Guatemalan peso to the gold U.S. dollar.

Changes and Devaluations

When the United Kingdom stopped using the gold standard in 1931, the British Honduras dollar stayed connected to the US dollar. This meant it didn't join the "sterling bloc," which was a group of countries that linked their money to the British pound.

In 1949, the British pound lost some of its value compared to the US dollar. Because the British Honduras dollar was linked to the US dollar, its value suddenly went up compared to the pound. This led to a decision to reduce the value of the British Honduras dollar. It was then set at 70 US cents.

Later, in 1967, the British pound was devalued again. The British Honduras dollar also lost some value, becoming worth 60 US cents. Finally, in 1978, the link to the British pound was completely removed. The currency of Belize (which British Honduras was renamed to in 1973) was then officially set at 2 Belize dollars for every 1 US dollar. This is the rate that is still used today.

Belizean Coins

The coins of Belize

Belize has a variety of coins that have changed over time.

Coin History and Materials

In 1885, the first 1 cent coins were made from bronze. A few years later, in 1894, silver coins for 5, 10, 25, and 50 cents were introduced. These coins looked similar to those used in other British colonies like Hong Kong and Canada.

Over the years, the materials used for coins changed. For example, in 1907, a metal called cupro-nickel replaced silver for the 5 cent coin. Then, in 1942, nickel-brass was used for the 5 cent coin.

Later, in the 1950s, cupro-nickel replaced silver for the 25, 50, and 10 cent coins. The 1 cent coin also changed its shape in 1956, becoming scalloped (wavy edges). In 1976, lighter aluminum coins were introduced for 1 and 5 cents. A special 1 dollar coin, shaped like a ten-sided polygon, was introduced in 1990.

Belizean Banknotes

Belize uses banknotes for larger amounts of money. These notes have also changed over the years, showing different leaders and symbols of the country.

Issuing Authorities

From 1894 to 1976, a group called the Board of Commissioners of Currency was in charge of printing money. They issued notes in values like 1, 2, 5, 10, 50, and 100 dollars. Later, 20 dollar notes were added in 1952.

When British Honduras officially became Belize in 1973, new banknotes were printed with the country's new name. In 1976, the Monetary Authority of Belize took over printing notes. Then, on January 1, 1982, the Central Bank of Belize was created and became the official issuer of all Belizean money.

Modern Banknotes

The Central Bank of Belize started issuing notes in 1983. In 1990, 50 dollar notes were printed again, and the 1 dollar note was replaced by a coin.

In 2012, the Central Bank of Belize released a special 20 dollar note to celebrate its 30th anniversary. This note featured a jabiru stork and special text to mark the occasion.

For many years, Queen Elizabeth II appeared on all Belizean banknotes. However, in 2023, it was decided that future banknotes will feature Belizean national heroes instead of King Charles III. These new bills will show important figures like George Cadle Price, who is known as the Father of Belize’s Independence, and Philip Goldson, the Father of Democracy.

Exchange rate

See also

• Economy of Belize
• Central banks and currencies of the Caribbean