And while he is clear on the Bank's mission as regulator to preserve the peg, the Governor says he as concerned after hearing some of our street interviews last night - where members of the public feel that the Queen's face on the dollar is what gives it value. The Governor explained why this is completely wrong:
Kareem Michael, Govenor - Central Bank of Belize
"The primary reason of what makes money money is that it is a mediums of exchange. And whiten that it has to be a unit of account and has some store of value. So, right off the bat, there is nothing in there that says a pictures whether, human or of an animal - we have Tapir, we have Jaguar, gives it value. So, the concern by the public right off the bat, should be dismissed right off the bat."
"The central bank fo Belize act, establishes in law that our currency is valued at a. 2 to 1 exchange rate, specifically that one dollar of our currency is 50 cents American."
Belize's reserves which underpin the value of the dollar currently stand at 900 million dollars - well above the 40% statutory requirement.
