Dólar de Belice: A Stable Currency in a Thriving Economy

The Belize dollar (BZD), officially known as the Belizean dollar, is the official currency of Belize. It is a stable and reliable currency that has been used in the country since 1973. The BZD is pegged to the US dollar at a rate of 2:1, meaning that BZD2 is equal to USD1. This peg has been in place since 1976 and has helped to maintain the stability of the Belizean economy.

History of the Belize Dollar

Before 1973, Belize used the British Honduran dollar, which was pegged to the British pound. In 1973, Belize adopted the Belizean dollar, which was initially pegged to the US dollar at a rate of 1:1. However, in 1976, the peg was changed to 2:1, and it has remained at that level ever since.

Benefits of the Belize Dollar Peg

The peg to the US dollar has several benefits for the Belizean economy. First, it helps to stabilize the Belizean dollar and prevent inflation. Second, it makes it easier for businesses to trade with the United States, Belize's largest trading partner. Third, it attracts foreign investment, as investors are more likely to invest in a country with a stable currency.

Challenges of the Belize Dollar Peg

While the peg to the US dollar has many benefits, it also has some challenges. First, it limits the Belizean government's ability to set its own monetary policy. Second, it can make it difficult for Belize to compete with countries with weaker currencies.

Future of the Belize Dollar

The future of the Belize dollar is uncertain. Some economists believe that Belize should adopt a floating exchange rate, which would allow the value of the BZD to fluctuate freely. Others believe that Belize should maintain the peg to the US dollar. The Belizean government has not yet made a decision on the future of the Belize dollar.

Belize Gross Domestic Product

The Belize gross domestic product (GDP) is the total value of goods and services produced in Belize in a given year. According to the World Bank, Belize's GDP was $2.7 billion in 2020. This represents a decrease of 6.3% from 2019, due to the COVID-19 pandemic.

Belize GDP Growth Rate

The Belize GDP growth rate is the annual percentage change in the GDP. According to the World Bank, Belize's GDP growth rate was -2.1% in 2020. This represents a significant decrease from the 3.4% growth rate in 2019.

Belize GDP by Sector

The following table shows the GDP of Belize by sector in 2020:

As the table shows, the services sector is the largest contributor to Belize's GDP, followed by the industry and agriculture sectors.

Belize GDP per Capita

The Belize GDP per capita is the GDP divided by the population of Belize. According to the World Bank, Belize's GDP per capita was $7,720 in 2020. This represents a decrease of 6.8% from 2019, due to the COVID-19 pandemic.

Belize GDP Forecast

The Belize GDP is forecast to grow by 3.5% in 2021 and 4.0% in 2022, according to the World Bank. This growth is expected to be driven by the recovery of the tourism sector and increased investment in infrastructure.

Conclusion

The Belize dollar is a stable and reliable currency that has been used in the country since 1973. The peg to the US dollar has several benefits for the Belizean economy, including stability, increased trade, and foreign investment. However, the peg also has some challenges, including limited monetary policy independence and difficulty competing with countries with weaker currencies. The future of the Belize dollar is uncertain, but the Belizean government is committed to maintaining its stability.