Many do not know what to make of an Atlantic Bank Notice that's been circulating. It says "please be advised that the buying rate of the United States Dollar at a rate of BZ$2.00 to US$1.00 applies to United States currency notes." End quote.
Now, that's the reality of the 2 to 1 currency peg that all of Belize has known for the last 70 years. So, why the notice?
Well, that's because the banks have been giving slightly less than that: for one US dollar, you've been getting $1.9825 Belize dollars - less than two to one. The difference goes into the commercial banks' pockets as administrative charges.
But that's changing now - with the Central Bank saying that the exchange rate for cash has to be the flat 2 to 1. That's a benefit to consumers who will now get slightly more when changing US into Belize dollars at the bank.
Now, the buying rate for all other US Dollar monetary instruments remains at the same rate of $1.9825 Belize dollars to US$1.00.
But, we're told the Central Bank as regulator plans to change that next month which will again benefit consumers.
This amounts to significant losses for the commercial banks and we understand there has been pushback.
