10 Dollars – Belize

In 2012, Belize's currency situation was defined by the stability of its long-standing peg to the U.S. dollar, set at a fixed rate of BZ$2.00 to US$1.00. This regime, in place since 1976, provided a crucial anchor for the small, open economy, fostering price stability, reducing transaction costs for its vital tourism and export sectors, and encouraging foreign investment. The peg was actively maintained by the Central Bank of Belize, which held sufficient foreign reserves to defend the rate, a point of confidence for both domestic and international economic actors.

However, this stability existed against a backdrop of significant underlying economic strain. The country was grappling with a high public debt burden, which had reached approximately 75% of GDP. A major sovereign debt restructuring in 2007 had provided temporary relief, but fiscal pressures persisted. Furthermore, the global financial crisis of 2008-2009 had dampened key industries like tourism, while the cost of imported goods—particularly food and fuel—remained high, contributing to trade imbalances and pressure on foreign reserves.

Consequently, while the currency peg itself was not under immediate threat of devaluation in 2012, maintaining it required careful fiscal management. The government, under Prime Minister Dean Barrow, was focused on implementing austerity measures and seeking further debt relief to ensure the sustainability of the fixed exchange rate. The primary challenge was to stimulate economic growth and rebuild foreign reserves without resorting to a devaluation, which would have increased the local cost of debt servicing and imports, thereby risking inflation and social discontent. The currency's situation was thus one of calm on the surface, with deliberate policy efforts underway to address the vulnerabilities beneath.