1 Cent – British Honduras

In 1904, the currency situation in British Honduras (modern-day Belize) was characterized by a complex and somewhat chaotic system of multiple, concurrently circulating currencies, none of which were issued locally. The official currency was the British pound sterling, but in practice, the most commonly used medium of exchange was the silver Mexican dollar and its fractional parts (real and medio). This created significant administrative and commercial challenges, as trade and wages were predominantly calculated in dollars and cents, while government accounts were kept in pounds, shillings, and pence, requiring constant and cumbersome conversions.

The reliance on the Mexican dollar was problematic because its supply was irregular and subject to the monetary policies of a foreign nation. Furthermore, the coinage in circulation was often worn, clipped, or of dubious authenticity, leading to disputes over value. To address this instability, the British Honduras government had, in 1894, fixed the exchange rate at one Mexican dollar to four shillings and two pence sterling. However, this official "Currency Proclamation" rate often diverged from the actual market rate, causing confusion and potential for loss in transactions.

This unsatisfactory monetary environment set the stage for a significant reform. The year 1904 was a pivotal point, as it directly preceded the colony's move to establish a singular, stable currency. In response to the ongoing difficulties, the British Honduras (Currency) Order in Council was passed in 1905, authorizing the introduction of a new, distinct national currency. Consequently, the Belize dollar, fixed at a value of one shilling four pence sterling (or 4s 2d to the old Mexican dollar), was introduced in 1906, finally providing the colony with a unified and government-controlled monetary system.