Belize dollar
Encyclopedia
The Belize dollar is the official currency in Belize
, formerly known as British Honduras
; (currency code BZD) is normally abbreviated with the dollar sign
$, or alternatively BZ$ to distinguish it from other dollar
-denominated currencies. It is divided into 100 cent
s. The official value is pegged at 2 BZ$ = 1 US$ since 1978.
The first dollars to circulate in British Honduras
were Spanish dollar
s, some of which were counterstamped with the monogram of a crowned –G-R– (Latin: Georgius Rex, King George.) They circulated between 1765 and 1825 at a value of 6 shilling
s or 8 pence
.
In 1825, an imperial order-in-council was passed for the purpose of introducing the British sterling
coinage into all the British colonies. This order-in-council made sterling coinage legal tender, and it set the exchange rate between sterling and the Spanish dollar
at $1 = 4s 4d. This exchange rate was supposed to be based on the value of the silver in the Spanish dollar
s as compared to the value of the gold in the British sovereigns. The realistic exchange rate would have been $4.80 = £1 (equivalent to $1 = 4s 2d), and so the unrealistic exchange rate that was contained in the 1825 order-in-council led to the initiative being largely a failure. Remedial legislation came about in 1838 with a new order-in-council, which did not apply to the British North American colonies due to minor rebellions in Upper and Lower Canada. The 1838 legislation introduced the correct rating of $1 = 4s 2d.
However, when the original order-in-council of 1825 was introduced in Jamaica
, Bermuda
, and British Honduras
, the local authorities set aside the mistaken rating of $1 = 4s 4d, and they unofficially used the alternative rating of $1 = 4s. The Bahamas
would also later adopt this same approach. When the 1838 remedial legislation came into force, sterling was already well established in these territories, the Spanish dollar
had been barred from circulation, and the authorities had no desire to adopt the devaluation that would have been associated with the correct rating of $1 = 4s 2d. The British shilling, referred to locally as a 'Maccaroni', was equal to one quarter of a dollar, and the system was working very satisfactorily.
So for a period in the middle of the nineteenth century, British Honduras
operated the British sterling monetary system just like Jamaica
and Bermuda
. However, in the wake of the international silver crisis of 1873, the silver peso
of neighbouring Guatemala
drove the British currency out of circulation. In an attempt to return British Honduras
to the gold standard, and also influenced by the fact that most imports were now coming from New Orleans in the USA, a new currency was introduced into British Honduras
based on the US dollar, hence bringing British Honduras
into line with Canada
. At that time, the Canadian dollar
was on the gold standard, and one Canadian dollar
was equal to one American dollar. This is the point where the currency history of British Honduras
diverges from that of the rest of the British West Indies
. In 1885, 1 cent coins were issued, followed by higher denominations in 1894. This year also saw the first issue of banknotes by the Government and a switch from the silver Guatemalan peso to the gold U.S. dollar as the base for the currency, with $4.866 = 1 pound. The rate of $4.866 as opposed to $4.80 is explained by the fact that when the US dollar was first created in 1792, it was based on the average weight of a selection of worn Spanish dollar
s. Hence the US dollar was at a slight discount in relation to the Spanish dollar
. Following the introduction of the US dollar gold standard to British Honduras
, the 25 cent coins were referred to as shillings due to their closeness in value to shilling sterling.
When the United Kingdom
abandoned the gold standard in 1931, the British Honduras
dollar continued with its attachment to the US dollar unit, and as such it did not become part of the sterling bloc. However, at the outbreak of the second world war, unlike in the case of Canada
, Newfoundland
, and Hong Kong
, British Honduras
did join the sterling area
even though it maintained its fixed exchange rate with respect to the US dollar. (The sterling bloc should not be confused with the sterling area
. The former was a group of countries who pegged their local currencies to sterling when the United Kingdom
abandoned the gold standard in 1931, whereas the latter was an exchange control arrangement introduced as an emergency measure at the outbreak of the second world war). In 1949 however, the British pound was devalued from US$4.03 to US$2.80. Since the British Honduras
dollar was pegged to the US dollar, this caused a sudden increase in the value of the British Honduran dollar relative to the pound. Protests ensued which led to a devaluation of the British Honduran dollar to a value of 70 U.S. cents (equal to 5 shillings sterling). Following Harold Wilson's devaluation of sterling in November 1967, the British Honduran dollar again devalued in sympathy with the British pound to 60 US cents. In 1978, the link to the British pound of BZ$4 = £1 was abandoned and once again the Belize
unit was pegged to the US dollar at a fixed rate of BZ$2 = US$1. This new rate which still continues today, reflects the devaluation of 50% in relation to the original parity with the US dollar in 1885, which last applied in 1949.
For a more general outline of currencies in the British Caribbean region, see Currencies of the British West Indies
.
and their style was similar to that of other British colonial dollar fractional coinage used in Hong Kong
and Canada
. Cupronickel
replaced silver in the 5 cents in 1907. This was itself replaced by nickel-brass in 1942. In 1952, cupro-nickel replaced silver in the 25 cent coins, with the same happening for the 50 and 10 cents in 1954 and 1956, respectively. Following a reduction in size in 1954, the 1 cent coin switched to a scalloped shape in 1956. In 1976, aluminium 1 and 5 cents were introduced. A nickel-brass, decagon
al 1 dollar coin was introduced in 1990
was established on January 1, 1982 by the Central Bank of Belize Act No. 15 (Chapter 262 of the Laws of Belize Revised Edition 2000). The first notes issued under its name were dated 1ST JULY 1983. Production of 50 dollar notes recommenced in 1990, the same year that the 1 dollar note was replaced by a coin.
Belize
Belize is a constitutional monarchy and the northernmost country in Central America. Belize has a diverse society, comprising many cultures and languages. Even though Kriol and Spanish are spoken among the population, Belize is the only country in Central America where English is the official...
, formerly known as British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
; (currency code BZD) is normally abbreviated with the dollar sign
Dollar sign
The dollar or peso sign is a symbol primarily used to indicate the various peso and dollar units of currency around the world.- Origin :...
$, or alternatively BZ$ to distinguish it from other dollar
Dollar
The dollar is the name of the official currency of many countries, including Australia, Belize, Canada, Ecuador, El Salvador, Hong Kong, New Zealand, Singapore, Taiwan, and the United States.-Etymology:...
-denominated currencies. It is divided into 100 cent
Cent (currency)
In many national currencies, the cent is a monetary unit that equals 1⁄100 of the basic monetary unit. Etymologically, the word cent derives from the Latin word "centum" meaning hundred. Cent also refers to a coin which is worth one cent....
s. The official value is pegged at 2 BZ$ = 1 US$ since 1978.
The first dollars to circulate in British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
were Spanish dollar
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...
s, some of which were counterstamped with the monogram of a crowned –G-R– (Latin
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
s or 8 pence
Penny
A penny is a coin or a type of currency used in several English-speaking countries. It is often the smallest denomination within a currency system.-Etymology:...
.
In 1825, an imperial order-in-council was passed for the purpose of introducing the British sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
coinage into all the British colonies. This order-in-council made sterling coinage legal tender, and it set the exchange rate between sterling and the Spanish dollar
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...
at $1 = 4s 4d. This exchange rate was supposed to be based on the value of the silver in the Spanish dollar
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...
s as compared to the value of the gold in the British sovereigns. The realistic exchange rate would have been $4.80 = £1 (equivalent to $1 = 4s 2d), and so the unrealistic exchange rate that was contained in the 1825 order-in-council led to the initiative being largely a failure. Remedial legislation came about in 1838 with a new order-in-council, which did not apply to the British North American colonies due to minor rebellions in Upper and Lower Canada. The 1838 legislation introduced the correct rating of $1 = 4s 2d.
However, when the original order-in-council of 1825 was introduced in Jamaica
Jamaica
Jamaica is an island nation of the Greater Antilles, in length, up to in width and 10,990 square kilometres in area. It is situated in the Caribbean Sea, about south of Cuba, and west of Hispaniola, the island harbouring the nation-states Haiti and the Dominican Republic...
, Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
, and British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
, the local authorities set aside the mistaken rating of $1 = 4s 4d, and they unofficially used the alternative rating of $1 = 4s. The Bahamas
The Bahamas
The Bahamas , officially the Commonwealth of the Bahamas, is a nation consisting of 29 islands, 661 cays, and 2,387 islets . It is located in the Atlantic Ocean north of Cuba and Hispaniola , northwest of the Turks and Caicos Islands, and southeast of the United States...
would also later adopt this same approach. When the 1838 remedial legislation came into force, sterling was already well established in these territories, the Spanish dollar
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...
had been barred from circulation, and the authorities had no desire to adopt the devaluation that would have been associated with the correct rating of $1 = 4s 2d. The British shilling, referred to locally as a 'Maccaroni', was equal to one quarter of a dollar, and the system was working very satisfactorily.
So for a period in the middle of the nineteenth century, British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
operated the British sterling monetary system just like Jamaica
Jamaica
Jamaica is an island nation of the Greater Antilles, in length, up to in width and 10,990 square kilometres in area. It is situated in the Caribbean Sea, about south of Cuba, and west of Hispaniola, the island harbouring the nation-states Haiti and the Dominican Republic...
and Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
. However, in the wake of the international silver crisis of 1873, the silver peso
Peso
The word peso was the name of a coin that originated in Spain and became of immense importance internationally...
of neighbouring Guatemala
Guatemala
Guatemala is a country in Central America bordered by Mexico to the north and west, the Pacific Ocean to the southwest, Belize to the northeast, the Caribbean to the east, and Honduras and El Salvador to the southeast...
drove the British currency out of circulation. In an attempt to return British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
to the gold standard, and also influenced by the fact that most imports were now coming from New Orleans in the USA, a new currency was introduced into British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
based on the US dollar, hence bringing British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
into line with Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. At that time, the Canadian dollar
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
was on the gold standard, and one Canadian dollar
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
was equal to one American dollar. This is the point where the currency history of British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
diverges from that of the rest of the British West Indies
British West Indies
The British West Indies was a term used to describe the islands in and around the Caribbean that were part of the British Empire The term was sometimes used to include British Honduras and British Guiana, even though these territories are not geographically part of the Caribbean...
. In 1885, 1 cent coins were issued, followed by higher denominations in 1894. This year also saw the first issue of banknotes by the Government and a switch from the silver Guatemalan peso to the gold U.S. dollar as the base for the currency, with $4.866 = 1 pound. The rate of $4.866 as opposed to $4.80 is explained by the fact that when the US dollar was first created in 1792, it was based on the average weight of a selection of worn Spanish dollar
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...
s. Hence the US dollar was at a slight discount in relation to the Spanish dollar
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...
. Following the introduction of the US dollar gold standard to British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
, the 25 cent coins were referred to as shillings due to their closeness in value to shilling sterling.
When the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
abandoned the gold standard in 1931, the British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
dollar continued with its attachment to the US dollar unit, and as such it did not become part of the sterling bloc. However, at the outbreak of the second world war, unlike in the case of Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, Newfoundland
Dominion of Newfoundland
The Dominion of Newfoundland was a British Dominion from 1907 to 1949 . The Dominion of Newfoundland was situated in northeastern North America along the Atlantic coast and comprised the island of Newfoundland and Labrador on the continental mainland...
, and Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
did join the sterling area
Sterling Area
The sterling area came into existence at the outbreak of World War II. It was a wartime emergency measure which involved cooperation in exchange control matters between a group of countries, which at the time were mostly dominions and colonies of the British Empire...
even though it maintained its fixed exchange rate with respect to the US dollar. (The sterling bloc should not be confused with the sterling area
Sterling Area
The sterling area came into existence at the outbreak of World War II. It was a wartime emergency measure which involved cooperation in exchange control matters between a group of countries, which at the time were mostly dominions and colonies of the British Empire...
. The former was a group of countries who pegged their local currencies to sterling when the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
abandoned the gold standard in 1931, whereas the latter was an exchange control arrangement introduced as an emergency measure at the outbreak of the second world war). In 1949 however, the British pound was devalued from US$4.03 to US$2.80. Since the British Honduras
British Honduras
British Honduras was a British colony that is now the independent nation of Belize.First colonised by Spaniards in the 17th century, the territory on the east coast of Central America, south of Mexico, became a British crown colony from 1862 until 1964, when it became self-governing. Belize became...
dollar was pegged to the US dollar, this caused a sudden increase in the value of the British Honduran dollar relative to the pound. Protests ensued which led to a devaluation of the British Honduran dollar to a value of 70 U.S. cents (equal to 5 shillings sterling). Following Harold Wilson's devaluation of sterling in November 1967, the British Honduran dollar again devalued in sympathy with the British pound to 60 US cents. In 1978, the link to the British pound of BZ$4 = £1 was abandoned and once again the Belize
Belize
Belize is a constitutional monarchy and the northernmost country in Central America. Belize has a diverse society, comprising many cultures and languages. Even though Kriol and Spanish are spoken among the population, Belize is the only country in Central America where English is the official...
unit was pegged to the US dollar at a fixed rate of BZ$2 = US$1. This new rate which still continues today, reflects the devaluation of 50% in relation to the original parity with the US dollar in 1885, which last applied in 1949.
For a more general outline of currencies in the British Caribbean region, see Currencies of the British West Indies
Currencies of the British West Indies
This article examines the monetary systems that prevailed in the region known as the British West Indies in the nineteenth and twentieth centuries. The territories covered in this article include British Guiana on the South American mainland, British Honduras in Central America, Bermuda, the...
.
Coins
In 1885, bronze 1 cent coins were introduced, followed by silver 5, 10, 25 and 50 cents in 1894. These coins were minted at the Royal MintRoyal Mint
The Royal Mint is the body permitted to manufacture, or mint, coins in the United Kingdom. The Mint originated over 1,100 years ago, but since 2009 it operates as Royal Mint Ltd, a company which has an exclusive contract with HM Treasury to supply all coinage for the UK...
and their style was similar to that of other British colonial dollar fractional coinage used in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. Cupronickel
Cupronickel
Cupronickel or copper-nickel or "cupernickel" is an alloy of copper that contains nickel and strengthening elements, such as iron and manganese. Cupronickel is highly resistant to corrosion in seawater, because its electrode potential is adjusted to be neutral with regard to seawater...
replaced silver in the 5 cents in 1907. This was itself replaced by nickel-brass in 1942. In 1952, cupro-nickel replaced silver in the 25 cent coins, with the same happening for the 50 and 10 cents in 1954 and 1956, respectively. Following a reduction in size in 1954, the 1 cent coin switched to a scalloped shape in 1956. In 1976, aluminium 1 and 5 cents were introduced. A nickel-brass, decagon
Decagon
In geometry, a decagon is any polygon with ten sides and ten angles, and usually refers to a regular decagon, having all sides of equal length and each internal angle equal to 144°...
al 1 dollar coin was introduced in 1990
Banknotes
The Board of Commissioners of Currency operated from 1894 to 1976. In 1894, the government introduced notes in denominations of 1, 2, 5, 10, 50 and 100 dollars. Production of 50 and 100 dollars ceased after 1928. 20 dollar notes were introduced in 1952. British Honduras was officially renamed Belize in 1973, and the following year a new family of notes was introduced with the new country name. On November 1, 1976, the Monetary Authority of Belize was established, and took over note issuance. The first and only notes issued under its name were dated 1ST JUNE 1980, and included a 100-dollar note for the first time. The Central Bank of BelizeCentral Bank of Belize
The Central Bank of Belize is the central bank of the Central American nation of Belize, established in 1982.- History :The Central Bank is the natural successor to the Monetary Authority of Belize, established from 1976 to 1981, and the Board of Commissioners of Currency running from 1894...
was established on January 1, 1982 by the Central Bank of Belize Act No. 15 (Chapter 262 of the Laws of Belize Revised Edition 2000). The first notes issued under its name were dated 1ST JULY 1983. Production of 50 dollar notes recommenced in 1990, the same year that the 1 dollar note was replaced by a coin.
External links
- Banknotes and Coins, Central Bank of Belize