Get To Know The Currency In Belize

December 8, 2022
by Larry Waight +

Figuring out how to deal with foreign currency is one of those small headaches that few travelers think of before planning a vacation, but Belize’s prominent tourism industry has influenced a system of currency that often makes it easier for visitors to pay for goods and services within the country. That said, there are some unique quirks you should know about before vacationing in or moving to Belize. Here’s everything you’ve wanted to know about the Belize dollar.

The Unique Relationship Between Belizean Currency and U.S. Dollars

If you’re wondering how your American dollar holds up in Belize, their unique approach to valuing their currency lets you run the numbers without the need for a conversion calculator. As a former English colony, Belize long tied its currency to the British pound. But when the United Kingdom withdrew from using the gold standard in 1931, Belize adjusted its currency to be measured at a set rate against the U.S. dollar. For decades, that rate has remained steady. Two Belizean dollars is worth one American dollar, and you can count on that to remain current no matter when you decide to visit. Understandably, notes and coins issued by the Belizean government also tend to closely resemble their counterparts in the United States. That includes five coins and a number of bills ranging in size from a single dollar to a hundred.

Carrying Money in Belize: What to Know

Because of how closely and stably the Belize dollar is linked to U.S. currency — and because the American dollar has significantly more usage outside of Belize’s borders — American dollars are accepted practically everywhere in Belize. That means that if you bring U.S. dollars with you to Belize, you won’t ever have to convert them to the local currency. Just bear in mind that most of the change you receive will be given to you in Belize dollars. If you do find yourself in need of local currency, ATMs usually aren’t too hard to find — and most accept cards from American, Canadian, and European banking institutions. Just be sure to check with your bank to make sure that your card can be used at ATMs abroad. But for the most part, businesses in Belize actually prefer taking American dollars. That’s because residents and nationals actually need to fill out paperwork to get approval from the government if they want to exchange their money for American dollars. It’s a method that’s designed to maintain the value of the Belize dollar, but it’s also one that better helps you leverage your American dollar while traveling in the country. Local money changers known as peseros can convert your American or Mexican currency into Belizean dollars, and the service is also offered by many high-end resorts and hotels.

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Bringing Money to Belize: What to Know

It’s generally advised that you use American rather than Belizean dollars whenever possible, but you should know about the customs limitations set by Belize’s government. Guests are allowed to bring up to $5,000 in American currency — or an equivalent amount in other foreign currency — through customs, but anything above that needs to be declared. The penalties are stiff as well. You can expect to pay up to three times the amount you brought with you and might even be given jail time for failing to declare any cash over the limit. This applies not just to paper currency but also to bearer bonds and checks as well. Most Belizean businesses won’t accept foreign debit cards, but major credit cards are usually accepted. If you don’t want to pay a penalty in customs or deal with the fees and hassle of using ATMs regularly, you may want to be careful about bringing a valid credit card and paying for as many of your high-cost expenses in advance as possible.

Using the BZ Dollar Outside of Belize

The exchange rate for the Belizean dollar may be standardized, but it gets barely any circulation outside of the country’s borders. That means that you’ll probably have trouble converting your Belizean dollars once you depart from the country. Unless you’re looking for something to keep as a memento, you’re advised to spend or convert any Belizean currency you have before leaving the country.

Managing Finances When Moving to Belize

Belize has rapidly become one of the region’s most popular choices for ex-pats looking to move to paradise, but you should definitely prepare your finances before moving there permanently. Chances are that you won’t want to convert all of your money into BZD, but you can easily circumvent that problem by creating an offshore account before you apply for citizenship or residency. Not only can you freely exchange money back and forth from this account without having to first fill out paperwork, but it can also help you save significant money on customs and taxes.