How's stable is the Belize currency?

Is it advisable to have a Belize Bank account in Belize Dollars?? I understand the interest rates are pretty good on Belize Dollar accounts.

What about USD Accounts???

There was a thread on this topic a while back. You might try searching for it. Also, there have been occasional related articles in the Belizeans papers.

On the surface, the Belizean currency is pegged to the dollar so it appears very stable. In reality, there is pressure on the peg and rumblings that it may not hold.

Also it is easy to exchange US dollars to Belizean dollars, but going the other way may be more difficult.

The most common set-up for most Americans living in Belize seems to be using US bank accounts and only transferring what they need when they need it into Belizean dollars.

If you are interested in *ahem* "sheltering" your money in Belize, that is a different story, but it normally involves lawyers, corporations, trusts, etc... and requires a large amount of money to make it worth your while.

[This message has been edited by ChrisW (edited 01-24-2002).]

[This message has been edited by ChrisW (edited 01-24-2002).]

Thanks Chris

After posting my message I continued to check other web locations for info.

It appears that you are correct and that the "Peg" as you state will not hold.

I found an IMF memo (Article IV) that states that the Belize Dollar is really worth $.03 cents and that the only reason for the 2:1 exchange rate is an arbitrary number established by the government and actually has no basis. Sounds weird to me.

Some time back I questioned why Belize banks did not pay interest on USD Accounts (I was told when I tried to open an account that they would be glad to open the account but it would be a non-interest bearing account.

Based on the information I received I did not open the account (who wants a savings account that pays no interest)

I now read that businesses cannot get US Dollars to fulfil their import requirements.

Perhaps hard times are ahead for the BZ$. I wounder if the banks still refuse to pay interest on USD Accounts

divein --

The "$.03 cents" is simply wrong (some misprint or mis-read). It was probably supposed to say 2.03BZ to the dollar. No currency can be that far out line.

You have to look at the balance of trade to get a handle on the pressure on the BZ$. When tourism picks up, more US$ will come in, and the peg may be more supportable. I hear that the shortage of US$ can push the price up to $2.30BZ to 1 US$ sometimes. These must be private transactions -- I think there would be some legal barrier to a lot of this sort of trade. ... But perhaps it's winked at. Lan would know this sort of thing.

Lan?

Mike Ryan

The reference to the value of the Belize Dollar was taken from the IMF Year 2000
Article IV Consultation brief found on the internet.

The calculation was based on the amount of
currency issued divided by Foreign Currency, in this case US Dollars, held in reserves.

In the case of Belize it came out to 0.03 cents US.

Its sliding to 2.4 or so in some areas of Belize....
with the money changers...

if you go to the banks though they give you closer to 2:1

I don't know why you are asking this question, but presumably it is because you own or are considering buying property in Belize or living in Belize.
My advice to you is to use Belizean money and banks only on an "as needed" basis, transferring only as much money into BZ dollars as you absolutely need to, for things that you must write checks for rather than pay cash.
Do not under any circumstances allow higher interest rates on savings paid by Belizean banks to lure you to transfer your assets.
The Belizean dollar is like the Cuban currency: It is worth ZERO anywhere in the world except Belize.
Yes, it is possible to get a US dollar account if you are a US citizen but they will nickel and dime you to death with fees for every little thing, and the fees may even exceed the fraud known as "exchange fees" that the Belizean banks ding you for. Unless you are in the retail trade in Belize there is no reason to have one and lots of reasons not to. Keep your money in the US and bring US dollars to spend in Belize as needed.
If you have any need to conduct any kind of financial transaction with a Belizean bank, I recommend you consider using only the Atlantic Bank.
If you have occasion to obtain any kind of loan from a Belizean bank, be aware that the loan documents will state that you may be required, at the bank's option, to repay it in US dollars. (And try to avoid doing this if possible...if you must borrow, do it in the US if at all possible.)

Sounds like all of the recent discussions
about using USD in place of Belize Dollars
is somewhat valid although I am sure that most Belizeans would protest based on their nationalizm.

I was in Panama years ago when the Balboa was replaced by US Currency and it worked very well....Prior to this the value of the Balboa was all over the board, no one wanted them outside of Panama and the interest rates shot through the ceiling.

In Aruba and other CARICOM nations the US Dollars is a readily accepted as is the local currency and you can have bank accounts in a variety of currencies and these accounts pay interest based on the interest rate of the country the currency is issued by.

It seems to work well for them and they don't have a problem with black market banking or with having a sufficient amount of FX in their banking system to support there import and other FX needs.

If things are a Marty says, and I know he is knowledgable in many areas, then why in the world would anyone want to take their dollars to the bank to exchange them.

If people go to the money changers the banks will not take in the dollars they need and the treasury's USD reserves will be depleted thus killing the import business unless they buy dollars on the back market pushing up the exchandge differential even more.....A widening circle that could eventually cause....????.

Basically the Belize economy has been dollarized for many years. Nearly everything of signicant value (e.g. real estate, hotel rooms, large sales contracts, cars) is and has been priced in U.S. dollars.

It's just a matter of time before the change is made official. Of course, the Belize Central Bank is a cushy job protection program for a few bureaucrats, and the new Central Bank Building, the fanciest building in Belize, is an example of priorities gone astray. So there are some political problems with going to a U.S. dollar economy.

As noted by others, the Belize dollar is worthless and basically non-convertible outside of Belize. That has been the case for many years as well. The change to a U.S. dollar economy, other than the short-term political fall-out, won't have much practical impact.

--Lan Sluder

I don't see how it CANNOT have an impact.

The 2:1 exchange rate for the Belize Dollar appears to be artificial, arbitrary and without basis and as you say the Belize Dollar has been technically worthless for quite some.

Based on the above I would expect that the Belize Dollar would be devalued in the event of true dollarization and perhaps even without dollarization.

From what I see that devaluation would have to be similar to the rate being given in the black market which has been previously stated at about 20% and appears to be growing.

In the above scenerio anyone with an abundance of Belize currency, be it cash in pocket or in banks, would be HIT to the tune of a 20%+ loss.

I had this happen to me with British Sterling several years back (15% devaluation)
It really hurt and seems that you can never recoup the loss.

Divein: your anology of what the value of the Belize dollor would be if it were pegged to the US dollar is only partially correct. Not to be too much of a pessimist, but the black market exchange rate is based on supply and demand. ie, the need of bussineses in Belize to pay for goods purchased in US dollars. If and when the Belize dollar is converted to anyother currency, it will also take into account such things as the national debt and Belize's ability to repay that debt. An over simplification is, a country is in many ways just like an individual or corportation. Its "value is based on it's "net worth". In other words, it's assets minus it's liabilities. And then factored in is what the lending community feels it's ability to repay is. Most accepted current studies on this has the actual value of the Belize dollar as being somewhere from 7 to 12 Belize dollars to the US dollar. The US dollar is so widely accepted is in a large part because the US maintains a gold reserve to back it's currency. One must ask what is backing the Belize currency and go from there. Good luck.

ARticle on News 5...

The average Belizean doesn't
need an economist to tell her
that U.S. dollars are scarce. But
what should the average
Belizean think when the
government's own Central
Bankers say their advice on how
to solve the problem is not being
heeded? As News 5's Janelle Chanona
discovered...the questions are easier than the
answers.


Janelle Chanona, Reporting
With most of the business community grappling with
the reality that foreign currency, specifically U.S.
dollars, is a scarce commodity, today members of the
Chamber of Commerce met with officials of the Central
Bank to discuss the situation. The hot topic on the
table was the soon to be established casas de
cambio.


Keith Arnold, Central Bank Governor
"It will take a great deal of effort to monitor it to
making sure that in effect we are accomplishing what
we are trying to do, that is making sure that we can
track the inflows and outflows of foreign currency
within the Belizean economy."


But because so much money is changing hands on the
illegal market, banks, have little to buy or sell.
Governor of the Central Bank, Keith Arnold says only
certain sectors of the community will be sold U.S.


Keith Arnold
"And those priorities are our export earners, certainly
for other kinds of things such as fuel, energy, water
and that sort of thing, those are very important areas.
But we don't put a high priority on mere consumption,
and so if the businessman is engaging in
consumption, he may have some difficulty, because
we consider...If you're going to buy foreign currency
to import water for instance or some kind of thing, not
a priority, we are not going to readily facilitate the
commercial banks. We do, but we put them in a queue
and it's not to the top of our priority."


Enter the idea of the casa the cambio, which would
serve those left out but...


Keith Arnold
"A casa de cambio operates efficiently in a floating
exchange system."


So since Belize has a fixed exchange rate, just how
will it work?


Keith Arnold
"A lot of people forget that the Central Bank doesn't
manufacture foreign currency, we earn it, and we earn
it from our export earnings. Whether it be tourism,
export crops, traditional export, or non-traditional
exports, but we have to earn it, that is the emphasis.
That is where we need to, rather than to concentrate
just on mere consumption."


But the business people in the room weren't
convinced...


Businessman #1
"You all cannot show us it will work. Then we have a
moral obligation that we will take it then to the
general populace, to take a fiscal position on this
cambio business. If not, we'll come here over and
over...Argentina changed nine presidents in three days
for foolishness. People were running one day great on
a track, the next morning they found out that there's
catastrophe. We should take history and use it, and if
we have the moral obligation to deal with it, then
let's act responsibly."


Businessman #2
"I don't think it's going to work, Mr. Luke Espat don't
think it's going to work, and I would like to phrase the
same question back to you, you can answer it if you
can. Whose idiotic idea was this?"


Yvette Alvarez, Deputy Governor, Central Bank
"I don't have a clue.


Businessman #2
"So then how is the Central Bank...


Yvette Alvarez, Deputy Governor, Central Bank
"Because the exchange regulations, which is a piece
of regulation that we got from our colonial masters, it
is the Central Bank that is responsible for the
exchange control regulations and therefore it is the
Central Bank that will have to administer it, that is
how we got involved."


Yvette Alvarez, a deputy governor of the Central Bank
says that attitude has contributed to a lack of
confidence in the Belizean economy. And as long as
psychology plays such a large role, appeals to
patriotism will likely fall on deaf ears.


Yvette Alvarez, Deputy Governor, Central Bank
"We are aware that large players in the system, these
people who earn foreign exchange in these sectors,
that as a result of the tightening foreign currency
situation, these players have taken individual
decisions that have resulted in lower flows into the
economy. In other words, people have been holding
their foreign currency offshore. Mr. Arnold calls that a
lack of confidence, and it is an indication that these
people who earn significant foreign exchange really
want to hedge their bets, if you may. And so while my
short answer to your question with regards to
bananas, is that yes, the funds continue to come in.
But with regards the question which you did not ask,
but which was implied, the other traditional sectors,
we have seen some reduction in foreign currency flow
and that has contributed to the further tightening.


The short-term solution requires, an adjustment in the
fiscal and monetary policies. This is not going to be
easy. It means that we have to slow the pace of
growth down a little bit, not entirely, just slow it
down a little bit, because we have too much Belize
dollars out there. This is not the American economy,
this is a Belizean economy with a very small
productive base. Hence the long-term solution, to
expand the productive base, to have industries that
earn foreign currencies, not consume, earn foreign
currency, and that takes a lot of doing. I'm not saying
that the decision is easy. I'm not saying that the
political...it's a political decision, don't get me wrong,


and I don't go to the constituents for vote, I don't go.
It's a political decision and not an easy one and I
don't envy the government."


Reporting for News 5, I am Janelle Chanona.


While 2003 is supposed to see a strong upturn in
the export economy, a combination of factors in the
sugar, citrus, banana, shrimp and tourism industries
will mean that the amount of incoming foreign
exchange over the next eight to twelve months will
remain below expectations.

For those of you who might want additional reading on this subject, try http://www.ambergriscaye.com/BzLibrary/trust287.html That is the study by the Belize Development Trust that suggests the Belize dollar is worth .03 US dollars.


[This message has been edited by Marty (edited 01-30-2002).]

bywarren,

Do you know anything about the "Belize Development Trust?" It and the entire "Belize Electronic Library" is one guy, an interesting but eccentric fellow who used to live in Belize in the 1960s and 70s but who has been back only one time in the past 10 or 20 years and who now lives in Miami. Ray's articles are about 95% personal opinion, 5% fact. Quoting Ray on the value of the Belize dollar is like quoting me about baseball or politics -- it's just one guy's personal, and usually not very informed, opinion.

And, by the way, the U.S. dollar is no more backed by gold than Ray is. The gold standard went out about the same time as Prohibition, about seven decades ago. We have a few billion dollars in gold, but we have trillions of dollars in paper money. It is not gold that gives value to the U.S. economy but the collective, and very much changeable, sense of currency traders that the U.S. economy is sounder than most other economies.

--Lan Sluder

Lan, I gave the web page quoting the Belize Development Trust only as a reference to where the earlier comments were concerning the value being .03 US dollars. As I mentioned, there are other more accepted studies that reference the value more like 7 to 12 Belize dollars to the US dollar when calculated on more generally accepted economic standards. Also, I think you missunderstood my comments on the US backing it's currency with gold. You are correct the US went off the gold standard in 1933 in favor of the gold bullion standard. After which the US dollar was twice devalued once in 1971 and again in 1973 based on the value of it to the price of gold. It was in 1978 that congress removed valuing the dollar to gold. My point is that the US still maintains gold reserves allbeit not in sufficinet amounts to equal the value of printed money in circulation. The gold reserves are just on of the "assets" that are used in calculting the value of the US dollar in the world market along with many other factors. My point being, if someone is interested in forming an opinion on the value of the Belize dollar if it were ever to be traded on the world market, one needs to give alot of thought to what of value Belize has to back its dollar. Whew, I feel like I just put in an allnighter for an exam. Excuse me while I open a biliken hense contributing to add value to the Belize dollar.

[This message has been edited by bywarren (edited 01-28-2002).]

*** Reporter Article***

Dollar Crisis may be close to breaking point

Representatives of four shipping lines currently serving Belize and at least one prominent airline company have made representations to government this week about the bottleneck in cash flow caused by the acute shortage of US dollars in Belize.

Representatives of the Hybur Line, which provides the Miami trading link, Hapag Lloyd and P&O Nedloyd, Hambury Sud, CMAA/CGM and Concorde Line, which provide the European and Asian shipping links to Belize this week published almost identical notices saying they will in future require freight charges and miscellaneous shipping expenses to be paid in US dollars.

Freight collect shipments will be accepted only if prior arrangements are made for payment in dollars.

This week, also two overseas representatives of Continental Airlines visited the Prime Minister to talk about the foreign exchange problem and its effect on airline travel.

It is widely expected that the new insistence on dollar trade will have a profound and immediate impact on imports and on business in general, leading to a dramatic slowdown of the economy.

Prime Minister Said Musa and Budget Minister Ralph Fonseca do not seem to have an answer tot he problem beyond their announced plan to open up dollar exchange houses or "casas de cambio" for the recovery of US dollars...

... Meanwhile, there is palpable anxiety among the business community about the shortage of dollars. Many businesses will be forced to retrench, or worse, close down, if they do not get an immediate infusion of US dollars to pay their bills abroad and to make new orders.

The trickle down effect of the dollar shortage, though well on its way, has not begun to affect the man in the street. But in business circles there is rampant frustration and for the first time in more than 30 years, open talk of a devaluation if the IMF has to be called in for a bailout.

Devaluation would be a bitter pill for the Musa government to swallow, and a calamity of the first order. It is expected that the Prime Minister will resist this move for as long as he can, but there is increasing foreboding that the call will not he his to make.

Meanwhile reports, not confirmed, say that Budget Minister Ralph Fonseca is opposed to calling in the IMF. He is reported to have said that he would prefer to resign as Minister of Budget Planning.

Events, however, are marching swiftly and some think, inexorably towards this end, and the ever cocky Minister Fonseca may be obliged to resign after all.

People blame him for the sea of debt Belize is now facing and for selling off national assets. A recent Central Bank report shows that more than 70 percent of the foreign exchange earned in Belize goes to ay the national debt and repatriation of income to overseas companies.

This is obviously a hot topic with a lot of thought being applied by lots of people both on and off the web.

As Lan said earlier, the Belize Dollar has been virtually worthless for many years, bywarren states that his information is that the US Dollar is worth 7-12 Belize dollars and the Belize Development Trust pegs it at 0.03 cents.

While not scientific, and not necessarily in accordance with standard accounting practices it appears that the general opinion is that the Belize Dollar is worth somewhere in the range of 0.00 ~ 0.15 cents ???

Since the current value of the Belize Dollar is arbitrarily pegged and that that peg is supported only by peoples faith in the Belize Dollar that the dollarization, if it comes, will require a devaluation of even more than previously anticipated. ( How Much ???)

While not an economist, politician nor scholar and with eyesight less than 20/20, I can see clouds in the sky and they are grey.

Chamber's business mixer calls Casas de Cambio "idiotic idea"!


by Adele Ramos


BELIZE CITY, Thurs. Jan. 24, 2002


Central Bank officials and local business people this evening expressed
their opinion that the new Exchange Control (Amendment) Regulations, 2001,
"will not solve the problems," that the implementation of Casas de Cambio
"will not work," and that some big businesses may soon sink due to a
serious foreign exchange shortage.


The statements were made at a business mixer hosted by the Belize Chamber
of Commerce and Industry (BCCI) this afternoon to discuss the new foreign
exchange regulations, gazetted December 29, 2001. The main purpose of the
27-page statutory instrument was to establish Casas de Cambio or exchange
houses, to curb the illegal trade in foreign currency.


"Whose idiotic idea was it?" questioned an irate appliance importer, to
which Yvette Alvarez, Central Bank's Deputy Governor for Operations,
answered: "I have no clue!"


"I don't think it will work; we have to deal with the domestic policies,"
Alvarez agreed, advising a refocus on fiscal and monetary policies.


Alvarez noted that a significant amount of the foreign currency is used for
debt servicing.


Governor Keith Arnold, who will leave the Central Bank in March, told the
gathering that the flight of foreign exchange from the country, which has
caused the foreign exchange situation to tighten, is largely due to "lack
of confidence," as people are hedging their bets.


Belize has BZ$200 million held at the United States Federal Reserve, much
of which it cannot touch. Even though the foreign reserve position is
better than reported last year, there is still a scarcity of foreign
exchange, and it threatens both local production and importation.


John Sosa, manager of MacMillan Brothers Limited, told Amandala that he
could foresee that quite a lot of businesses will soon have to close down
if the problem is not addressed. Sosa said that his company, a trading
house, which depends 100% on foreign exchange to acquire its hardware
goods, owes its creditors for 120 days - 4 months.


"If the situation continues I can see where definitely our business would
suffer."


Sosa, who fears a shutdown if the foreign exchange problem is not solved by
June, said that personally he would like to see Government quit borrowing,
and "face the situation."


David Platt, manager of Western Dairies of Spanish Lookout, told the
newspaper that he used to be able to pay for all his imports, flavoring and
packaging, which account for 25% of the company's sales, within a week. The
company's payment to its foreign supplier is now due a little over a month
- over the usual 30-day limit to settle payments.


"Casas de Cambio will not be able to pay our import bills abroad, but we'd
still have to go to a commercial bank, and if they do not have the money,
then we're still nowhere," Platt commented. His hope is that Government can
solve the problem very quickly, because there are at least 120 farmers and
their families depending on the sale of their milk.


An accountant who wishes to remain unnamed said that although the Casas de
Cambio are not going to create foreign exchange, they would help curb
currency transactions on the so-called black market.


"It will be very difficult to control that illegal trading in foreign
currency ...It [the new regulations] will only give a legal permit to
certain persons who are already doing the illegal trade, and now they will
have a license to do it," he further stated.


"The law is supposed to stamp out the black market, but the opinion is that
it will not work," he argued, adding that the Central Bank has neither the
staff or the resources to carry out a proper monitoring and policing of the
new regulations.


Arnold, speaking with the newspaper after his presentation to the
gathering, said that "certain individual hotel operators" expressed their
desire to become exchange houses, but the applications have not yet been
filed.


Businesses or individuals that want to become exchange houses will have to
place half-a-million dollars into an account, which will be frozen. With
the scarcity at hand, there is the question of who will actually invest
that much in something they are not sure will actually be profitable for them.


Commenting on the capital requirements, Arnold said: "It is prohibitive, in
a sense… You have to have relatively deep pockets to be able to get into
business."


The unnamed accountant said it would be very difficult to make a good
return on the investment.


"It is not an attractive financial proposition to any investor to go into a
new line of business… and certainly the commercial banks are very, very
concerned about it, because it's going to compete with them," he added.


Arnold said that the Central Bank has to try to meet the needs of all the
sectors of the business community - hotel operators, businessmen,
commercial banks - and try to eliminate all impediments in the financial
system.


Alvarez said that the public sector (Government) uses more than US$50
million annually from the foreign exchange pool, and what is left over is
not enough for other purposes. She said that the necessary short-term
solution - adjustments in fiscal and monetary policies, and particularly a
slowdown in the economic growth - would be painful. In the long-term the
productive sector would have to work hard to expand production to attract
foreign exchange.


Amparo Noble, manager of the Angelus Press, said Government, the Central
Bank and the private sector need to sit down and discuss better solutions
to the foreign exchange problem.


Notably, the BCCI has still not been successful in getting a meeting with
Government it had requested since last November, to discuss the foreign
exchange situation. BCCI has resolved to draft a formal communiqué to
express its views on the matter.


"You have to grab the bull by the horns," said businessman Santos Diaz.


BCCI president, Dr. Gilbert Canton, said that Belizean importers now have
to start considering the things they buy. He recalls the recent importation
of "Halloween pumpkins," for example, which appeared on the shelves of a
local supermarket. Undoubtedly, the "imported lifestyle" many Belizeans
live is a major contributor to the problem as well. Therefore, the solution
must start at home.

From Lan:

CURRENCY SITUATION WORSENS: Belize's currency crisis appears to be getting
worse. The demand for U.S. dollars in Belize exceeds the supply, resulting in
a weakening Belize dollar and concern among business owners that they will
not be able to get U.S. currency to pay for imported items or for freight
costs. There is renewed talk of devaluation of the Belize dollar which has
been pegged to the U.S. dollar at 2 to 1 for many years.


In the last week of January, reportedly Continental Airlines and several sea
shipping companies have complained to the Belize government that the shortage
of U.S. dollars is hurting business. Some freight and shipping companies will
now accept payment only in U.S. dollars. Belize businesses face difficulty in
finding Belize dollars, however.


On the gray market in Belize and border areas, currency traders are giving up
to 2.30 to 2.40 Belize dollars for 1 U.S. dollar. Unconfirmed reports are
that wealthier Belizeans who cannot convert their Belize dollars to hard
currency are buying real estate, believing that the value of Belize property
will track the value of the U.S. dollars, regardless of any declines in the
value of the Belize dollar.


The Belize government seemingly has no clear plan to resolve the crisis. It
has announced only that it will license casas de cambio, or currency exchange
offices, to control the currency flows. Representatives of Belize's Central
Bank, who occupy one of the fanciest new buildings in all of Belize, say that
not all sectors of the Belize economy will have equal access to U.S. dollars.
Those businesses involved in earning hard foreign currency may find it easier
to legally get U.S. dollars than those more involved in "mere consumption,"
in the words of Central Bank Governor Keith Arnold.


The government also has asked hotel operators, a major source of hard
currency receipts in Belize, to report monthly on foreign currency income.


So far, the currency exchange problem has not affected tourists directly.
Hotels, tour operators and others in the tourist industry continue to do
business at the 2 to 1 rate. Thanks to imported products already in the
pipeline, the shelves at most retail shops are well-stocked. Most visitors to
Belize are unaware of the crisis.

I would not imagine that there would be an immediate impact on tourism. In fact, if devaluation or devaluation/dollarization were
to come about it would create an immediate boom to the economy of Belize in increased tourism.

How many times have we read tourists posts to the Belize boards that complain that the costs were too high or that the costs in Belize are the highest in the caribbean???

Many of our posts in reply to tourists questions admit that the prices are "somewhat higher" than other places in the Caribbean.

Since the tourist dollar (USD) is of such value to the economy and provides the currency for importation of needed goods why in the world doesn't the government take some action to reverse the situation.

If a collapse of the BZD is really in the cards I think it would be a sin for the government not to take the necessary actions to prevent this failure....does Belize we want to look like Argentina and be known as a failure??

I am sure that it is a difficult situation to master but the Belize Governemnt can contact the IMF at ANY TIME to request an immediate consultation...I realize that some people in government don't like the IMF because of their demanding ways but THEY ARE THE EXPERTS. They work with these types of matters on a daily basis and they have the finances to back their recommendations.

bywarren

Thanks for posting the link to the article which pegged the Belize Dollar at 0.03 cents.

However, the link does not work. Could you repost??? Thanks

Bobby I have to disagree with you there.

The IMF is known for promoting mega-projects (like the Challillo Dam)in developing countries, funded by debt, and then imposing "austerity" programs on the countries so they can pay back the debt. The big capital-intensive programs the IMF likes usually have little relevance to the real economy of ordinary people, but they provide big contracts for multi nationals like Bechtel and these corporations show their gratitude by spreading mordida among the government honchos.

But it is the middle class and poor who pay the tab when the loans for these projects come due and "austerity" (meaning cut all human capital investment programs, like education and health care) spending regimes are put in place.

Better to refrain from incurring massive debt for large capital projects (like the dam) and instead, avoid debt. The best investments for developing countries are small micro enterprises, low interest loans to cooperative and small enterprises that will help communities become self sufficient.

IMF = big boondoggles = big debt = gifts of public funds to corrupt governments and their multi-national corporate buddies = kick in the ass to the middle class and poor.

In my opinion, the Belizean people would do well to force its government to stop
borrowing money to build boondoggles,cut duties and confiscatory taxes, end all
utility and other monopolies, and replace party dictatorship rule with real representative democracy, with local control over decision making and local say in how $$
is spent, replace "minister's discretion" with the rule of law (with strict conflict of interest laws).

More than taking orders from the IMF, I think these things would ease the financial crisis both in the short and the long run and build a stabler and fairer economy.

Susan

You may well be right that the IMF is not the right answer BUT....if the guys who are supposed to be the experts in solving world financial crisis cannot be depended on WHO CAN.

In my optimism and perhaps ignorance I guessed that the pro's would be the answer.

BUT, is there anyone in the Belize Government (Central Bank) who has the experience and cujone's (?) necessary to take the economy by the hand and lead it out of its pending doom??? The stabs at answers we have seen so far tell me that the answer to that question is negative.

And even if there were such a person / persons do you think that they could go and do their thing without interference from others, both government and non-government ??

I think not.

The situation being what it is has far too short a fuse. Any actions that can be taken will probably be too late anyway regardless of whether or not the IMF is invited.

It is going to hurt the lower and middle income families much worse than any of us and I truly feel for them but something has to happen one way or another and we are powerless to prevent it.

Sorry, Divein. I forgot to put the .com in Try http://www.ambergriscaye.com/bzlibrary/trust287.html As Lan mentioned, this is just one persons opinion based on his theories of valuing one currency against another. I have not checked the accuracy of the figures he quotes, but based on his theory, he makes some valid points. I don't think he goes far enough in discussing in a more positive way what options Belize has to help overcome this problem. A number of people have mentioned some of the things Belize could do if the Government were so inclined. Without going into the whole list, I would offer one example that I think shows the problem and exposes the flaws in their thinking. The banking system charges a prime rate of 14.5% and the normal lending rate to individuals is around 16%. These kind of rates allow the main banker, Lord Aschroft, to fly in and out of the country in his private jet and be descirbed as a "billionair" while preventing the kind of ecomomic growth ie. buying homes that are needed by much of the people thus employing carpenters, electricians and plumbers. In other words, creating economic growth from within the country where the people earn and spend their money in Belize. Much of the tourism dollar also creates the need for construction and service jobs, but in too many cases the monies generated from that does not stay in the country. It goes to purchase goods from outside the country thus creating this shortage of US funds and in too many cases the profits from tourism are not retained and circulated in the country but, are sent out of the country to the foreign owned companies. Now, don't get all over me as being opposed to tourism. Tourism is good. But, a country needs diversification. Especially when it creates growth from within utilizing the countries internal assets.

In my opinion, the IMF is a tool used by the rich to bail themselves out of bad investments in foriegn countries and to steal the wealth from smaller less powerful countries. If the IMF were to get involved with Belize, it would be because some people see something to be gained by holding power over Belize. If the IMF gave them a loan, it would just be another loan that Belize can not pay back. The IMF would hold the loan over Belize using it to force the Belizean government to serve their cause.

There is no easy fix for a economy that has spent more than it makes for too long. Fixing an economy that has taken on too much debt requires making immediate sacrifices that in the long term are rewarded.

Unfortunately, it is political suicide for a politician to force his/her constituents to sacrifice for the future. Thus, the politicians typically put a patch on the economy instead of fixing it. The patch only delays and worsens the inevitable, but the citizens remain content and politics can continue as usual at least for a time...

The way to really fix an economy is the same way one would fix their own finances if they got into debt trouble -- spend less than you make and use the difference to pay down your debts. Typically this is not a politically viable solution. So most governments continue spend and grow and accumulate debt until as in the case of Argentina they dramatically implode.

An email from Jorge Varela, to the Belize Culture listserv this morning....

Belize Economy

All the ranting and raving about devaluation in the media and even more so on the Belize Culture list has prompted me to make a few comments.

First, the call for intervention by the IMF in Belize's affair is foolhardy. The IMF has proven time and again that the measures they recommend (usually increased debt and social programs) to the recipient country has proven nothing but fatal. A good case in point is Argentina. Argentina followed the IMF's every dictum to the letter for over 3 years finally ending in the fiasco they are in today. The IMF has never "saved" a country's economy! Look it up folks.

Second, the floating dollar has always existed. The black market is the true measure of the value of the Belize dollar. The perceived worth is the reality, as it has been in the U.S. ever since they came off the gold standard. The perception of the value of the U.S. dollar being greater than it has historically been was caused by the Government of Belize. How? The Government of Belize needs more U.S. dollars to pay the debt of the country. A debt, which has doubled in three years thanks to the free spending of the current administration. The concept was simple and historically functional - borrow, spend, wait for the loans to be forgiven and repeat. But this time the loans were not forgiven yet the cycle was repeated. Some of the debt was not forgiven due in part to politics in the U.K. and Belize's association with Lord Michael Ashcroft. Mr. Ashcroft's political opponents in the U.K. refused to forgive Belize's loans because in their minds it was feeding their opponents political and personal war chest.

In a desperate act to increase the amount of U.S. dollars in the Belize Treasury, the government called on the people to save U.S. dollars by buying at home and to deposit what US dollar they receive in the bank. This was the fatal and foolish mistake since the bulk of the items on the shelves are not Belizean and in reality required the retailer to obtain U.S. dollar from the Belize Treasury. The marketing should have focused on Belizean products instead, highlighting items that were of Belizean manufacture or produce. Marketing in that way would have increased the purchase of Belizean products and reduced the money spent on U.S. dollar goods while at the same time improving consumer confidence in the economy. There also would have been an increase in revenues because of the sales tax on goods.

Regardless, the people's perception changed based on what GOB was telling them - therefore, the U.S. dollar became more valuable. Although the U.S. dollars circulating on the streets is almost as much as prior years, the perception is changing and the reality of devaluation in the streets, the real market, is setting in.

That the country is experiencing a shortage of U.S. dollars is true. That it was caused by the current administration is undeniable. To think that it is unreversable in the short term is ignorant.

Has there been less dollars than in previous years? No official survey can be taken as the black market does not track such numbers but deductive reasoning can partially answer the question. If tourism has declined only slightly and sugar has increased or at worst stabilized, then it follows that the dollar on the street likewise has declined slightly. But the hoarding of U.S. dollars in response to the governments marketing is exacerbating the problem of shortage of U.S. dollars. The review of the effects of the U.S. dollars in three major business segments - tourism, sugar, and retail - will help to shed further light on this discussion.

The tourism industry has seen a small slow down in business following the terrorists attack in the U.S. but there was a favorable last minute turn out over the Christmas and New Years holiday. Bookings for the month of January were down for most operators with visitors being mostly Europeans who traditionally have been more conservative in their spending than Americans. Overall the tourism industry takes in the bulk of U.S. dollars and spends the least. The slow down may cause some reduction in dollars on the streets and in the Treasury but it should be minimal. Tourism should fare well if the government does nothing to affect it - meaning, no increase in gas taxes, sales tax, tourist tax, etc. GOB has already shown their willingness to tax their most lucrative industry by increasing taxes to certain tourist attractions, the logic being that tourists will not complain. GOB needs to do the exact opposite and reduce taxes to make travel to and in Belize cheaper in order to increase the influx of U.S. dollars.

The sugar industry over the last 12 months has faired well compared to the previous three years due in large part to the increase of the sugar importation quota of the U.S. This has brought some relief to farmers but many are struggling to reduce the debt that they amassed trying to survive over the last three years. GOB has basically ignored the problems of the farmers and that seems to have helped - better they leave it alone instead of attempting to tax it or manage it into success. The U.S. dollar is important to the sugar industry because much of the fertilizer and equipment bought by the farmers come from the U.S. or from countries that require payment in U.S. dollars. The sugar industry generated sufficient U.S. income to pay for its needs with sufficient "change" left over to be sent to the coffers of the Belize Treasury. All GOB needs to do to improve the sugar industry is to find other markets and uses for sugar cane. The use of bagasse as an energy source is one example of such market and it serves a dual purpose by reducing the country's need for more U.S. dollars to purchase fossil fuel or electricity from Mexico. GOB should take its' blinders off - the foreign owners of the electric utility sees no need for bagasse because it reduces their claim to the need of more U.S. dollars which is never entirely spent on the purchase of fossil fuel or electricity but instead it is paid to the foreign parent company as a dividend.

The retail industry is being hit the hardest because most of the goods on their shelves are foreign and most are from the U.S. or are bought through the U.S. requiring payment in U.S. dollars. The retail industry has traditionally depended on the Belize Treasury for its U.S. dollars with the black market serving only as a means to obtain discounted funds. That has changed - the black market is now the primary source of U.S. dollars and the Treasury merely a last, futile resort. GOB has brought the country full circle by saying buy local. Consumers will have to buy local if the dollars do not exist to buy elsewhere. This normally is not a bad thing as farmers will need only compete with limited products from the international market and local farmers will be able to produce more profits. But farmers will need some U.S. dollars to purchase fertilizer and farming equipment. Of course, if the farmers don't have the U.S. dollars from the Treasury or has to pay a premium for the U.S. dollar the supply of local produce will dwindle. This could lead to dire straits.

The Government of Belize, in a few words, is killing its own economy.

So what should Belize do? Is the privatization of government assets the answer? That appears to be the belief of the current administration. The person in control, Mr. Ralph Fonseca, has stated in not so few words that by bridging the short term debt obligations by privatization, that the economy will eventually emerge in some master plan.One can only guess at what that plan is since at this time he has failed to share it with the people, and apparently even others in his administration. Hopefully it is not to passively wait for debt forgiveness. To bridge the gap until his master plan kicks in he's selling the country's assets. (In the case of the postal service he has chosen to increase rates so as to increase the selling price causing the citizens double pains). Privatization is not a bad thing but the terms of such privatization can sometimes hurt more than it can help. The Government of Belize has proven time and again that they have negotiated contracts that hurt instead of help the country often leaving its citizens to wonder if perhaps the politicians in power at the time may not have benefited personally from the privatization.

Obviously, privatization is not the long term answer. Mr. Fonseca's other idea, Money Exchanges, is equally futile. What does he hope to accomplish, a deposit of the U.S. dollar cash in the Treasury? Does anyone really expect these people to put money in a bank they can't control. NOT! Maybe it's a means to tax the money changers and increase income - but at what cost? There must be legislation, administrators, etc. hired to monitor this process. This is foolish - it solves nothing and increases cost of government.

To solve the problem the country must reduce debt but it needs to do so without increasing taxes which would definitely send the country into a tailspin. It needs to curb spending and lobby foreign governments not for more loans but for a market for our products which in the long term is more profitable. It needs to create bilateral agreements and encourage foreign manufactures to base their plants in Belize so that Belizeans will benefit not only from jobs but also in a reduction of cost on products used daily and of course a reduction in need for foreign dollars to pay for the goods that used to be imported. It needs to reign in the foreign held corporations which pilfer the people of what is rightfully theirs. It needs to cease monopolies across the board but especially in telecommunications which is not only a drain of US dollars but a detriment to the economy. Two monopolistic telecommunication companies does not a free market make.

GOB, more than nothing else, needs to stop allowing the likes of Mr. Ashcroft from unscrupulously taking U.S. dollars out of the country. We need to police the covert banking activities of the multinational organizations that keep abusing of the country's goodwill. We need to police the politicians who pilfer the country. We need to prosecute corrupt politicians to the full extent of the law.

Not to say that Mr. Ashcroft isn't himself concerned about the economy - he has been spending considerable amount of time in the country as evidenced by his personal jet sitting at the International Airport. But the question must be asked of Mr. Ashcroft, "Are you here to ensure that your business interests and therefore the economy remain intact or are you merely here to pilfer what remains of a fragile economy?" As the largest individual shareholder of both the largest bank and the largest non-banking business in the country, Mr. Ashcroft holds one of the keys to the country's success and thereby even more personal financial success. However he does not have the only key and actions by GOB could in essence exclude Mr. Ashcroft from further success in Belize. These are interesting times, especially for Mr. Ashcroft.

Jorge I. Varela

another comment on the culture group, followed by jorge's response...

That is all very nice but where does the money come from today and tomorrow,
if the Belize Government is using most of the hard currency to pay their
debts and everybody is stacking the US under the bed, where is the US coming
from to pay for the Imports. Most of the black market on the border is to
buy US for BH spend (like in Chetumal and Melchor) to buy Pesos and
Quetzales, if you stop that, who wants to take BH? Everybody will need to
have US to buy, so the demand for BH will decrease. If they buy in Belize
instead, the goods need to be paid for in US as well.
Devaluation is not an option because it will not resolve the shortage of US
and prices will raise in proportion, hitting all salary recipients, making
them poor.
The government needs money, must earn US $, they have sold what they can,
and now what.....the problem is getting worse, but you still have to resolve
it, many of the comments I read are interesting and the critiques right,
but it will not resolve the problem, it is obvious that big mistakes have
been and are made, but you still have to resolve the problem or Belize as a
country and the majority of Belizeans will suffer.
The government must learn to spent less. The country needs money for the
Centralbank to stabilize the exchange rate, you can only get money from the
ones who have some like the IMF and other financial institutions or Mr
Ashcroft and many other businessmen, so I think it is a bad moment to enter
in conflict with them.
Saludos Marco


From Jorge:
Marco,


Basically your post agrees with my statements:
1. Asking consumers to buy local achieves nothing.
2. Devaluation is not an option, although the black market defines the value so this in reality is out of the direct control of the government.
3. Casas de cambios serve no purpose.
4. The government needs US dollars.
5. The government spends too much and is the cause of the problem.


Where we defer is in the assumption that the solution lies completely out of GOB's control and instead in the hands of the IMF, or Mr. Ashcroft, or some other organization or individual. With those solutions you are merely digging yourself into a deeper hole of debt or reduction of assets. Remember that the IMF will lend you money with conditions on spending and Mr. Ashcroft does nothing for free (and rightfully so). GOB needs to both borrow and spend LESS, not more. There is a way to get out of this mess with no (or extremely little) increase in national debt.


GOB should be working with the creditors to defer payment for 12 to 18 months in order to leave the US dollars it receives in its Treasury for use by businesses. It is much better for the creditor to accept the deferment than default. If GOB can show a workable plan, most creditors will accept the deferral as it will earn them more dollars in the long term. Deferral is a lot easier than one would think and since the dollar is not floated, it would cause no great harm to its value except in the international monetary community. Such a plan, by the way, should include no further borrowing until such time as the debt is reduced by one half. Why one half? Simple, history has shown that given our GDP we can sustain a national debt of one half of where it currently stands with little to no effect on the value of the Belize dollar in relation to foreign dollars.


Next, eliminate even the talk of devaluation or shortage of US dollars by the administration. Remember, perception is reality. Instead, allow retailers free access to the U.S. dollars that was flowing to the creditors. I know this flies in the face of what IMF and what simple logic will suggest but the reality is that by flooding the market with US dollars we make the value of the US dollar weaker - it is readily available. What happens then, the hoarding slows then eventually stops, no need to hoard US dollars. The U.S. dollar starts flowing, people start spending, the economy starts to move.


We still have the problem of the national debt and excessive spending but this buys us short term relief and stops the problem from escalating. Now we can focus on the long term scenario - increased output. My suggestions in the previous brief included a summary of ideas that would help both the tourism and sugar industries, the two greatest producers of foreign income to the country.

Jorge I. Varela

From Jorge...

Took a pop over to the message board to see what the discussion was about. The gentleman that quoted the $.03 effective exchange rate may have misread the IMF document. In 1999 the effective exchange rate decreased .03 percent. Nowhere in the 2001 Article IV Consultation does the IMF state the real exchange rate as being .03. The real exchange rate is what the black market is paying - which according to my personal experience is $2.18BZ/$1.00US for US cash in large bills ($50 or $100) and $2.10BZ/$1.00US for US checks. On San Pedro you are more likely to get $2.12BZ/$1.00US for US cash and $2.04BZ/$1.00US for checks.


BTW, it's not 2.13


Jorge Varela

[This message has been edited by Marty (edited 01-30-2002).]

i am curious to know what the belizean government has wasted so much money on. are there specific projects that have created black holes of loss? i'd be interested in doing some research if i knew.

cheers

How long do you want the list to be? LOL

I think that is one of the complaints that the IMF has against Belize and other small nations. It has a big portion of it funds going to such things as government buildings instead of government programs that aid the people.
Two such examples would be the new Central Bank Building and one that has had ongoing problems for several years is the Karl Huesner(sp) Memorial Hospital. Oops I forgot the tourist village that is located downtown right by the swingbridge. That was suppose to be a winner, but think its is now been a loser for many years.
Some of the winners are the Southern Hospital, the completion of the Hummingbird and the paving of the Southern Highway. Also the new airport gets my vote.

What about all the Dodge diesel pickup trucks that were donated to the government?
They all seem to have disappeared ages ago.

[This message has been edited by kcbc (edited 01-31-2002).]

One of the reasons the PUP was elected was they promised to build 10,000 concrete houses in new subdivisions to give folks more permanent and hurricane resistant structures to live in in Belize City. And they were going to create thousands of new jobs. Both of those lofty promises were on the basis of GOB borrowed funds and neither of the promises quite panned out according to plans.
But the debt was incurred and is owing.

Voters were lead to believe the houses would be free, which they're not. The cost for them is reduced, but buyers still have to qualify for the loan which is where the newly created jobs came into the picture.

Well, it looked good on paper but it turns out there aren't many takers so the developments stand largely empty though the houses are there and so is the government's outstanding debt.

And, I reckon, some brother-in-law and his government official relative made some money on the transaction at the expense of the people of Belize.

[This message has been edited by ckocian (edited 02-02-2002).]

bywarren

Thanks for reposting. It is sooo interesting that I decided to post it.

Since this "calculation" was made in 2000
I wonder what the same calculation would show now ????

REPORT #288 May 2000
BELIZE DOLLAR IS WORTH .03 CENTS USA? PLAYING WITH THE NUMBERS AND TRYING TO FIGURE THE STATE OF THE BELIZEAN ECONOMY!


Produced by the Belize Development Trust


If the Belize Dollar is worth only .03 USA cents by some calculations, in May, 2000, and the official exchange rate is $2 Belize dollars for $1 USA dollar, or a Belize dollar is officially exchanged for .50 cents USA. How does the government do this magic illusion? Is there sleight of hand, some magic trick to guaranteeing .50 cents USA for a Belize Dollar, when the economic figures say it is only worth about .03 cents USA?
Don't you always wonder what the government is really saying, when they announce those complicated balance sheets and fiscal reports? Can you figure things out more simply? We know it is only human nature for politicians to lie and put the best face on things and bureaucrats are no stranger to this phenomena either. What really is the state of the economy of Belize?

One of the ways of guaranteeing an official exchange rate, is like one of those one armed bandit gambling machines. They work on percentages. They only permit a certain amount of people to get their money exchanged. In Belize, this is done by foreign exchange permits, bank commissions and a host of rationing and control regulations by Central Bank that control the flow of foreign exchange. Sort of like the machine that will only pay out a certain number of times when you gamble.

In reality, a dollar currency, in which the exchange rate is guaranteed usually also has what they call a dollar standard. A dollar standard in Argentina currency has to have as much USA dollars in foreign reserves, equal to the amount of Argentine currency in circulation. This is not the case in Belize. In Belize, the official exchange rate is done on FAITH, like your local religion. You have to believe in the exchange rate.

If the Belize dollar official exchange rate, done on religious FAITH, were backed by a dollar standard. What really would we have economically? We know the annual government revenue runs between $280 million to $380 million Belize currency. We also know that the Foreign National Debt is somewhere between $900 million and $1200 million Belize dollars. If you take an average of $330 annual revenue and an average of foreign debt of $1050 million and add them together, we get a figure of $1380 Belizean million currency. This should then be the amount of Belizean currency in circulation. We don't know actually how much money is printed in Belize and is in circulation. But that number of $1350 million Belizean sounds fairly accurate. We also know from a recent government press release of last week, that they only have $28 million USA in reserves.

At the official rate of exchange, the actual foreign reserves should be $675 USA millions. But we only have $28 million USA, so we are not using a DOLLAR STANDARD like Argentina. Even allowing for some juggling with the figures, it is still going to come out with more Belizean money being printed and in circulation than we have backed by a Dollar Standard with foreign reserves.

Normally, we would call this inflationary. That the Belize currency is severly inflated. The only real solidity in this economic picture, is that the Belizean public believe in the Government official rate and have religious FAITH in the PUP to make good on the inflated official rate. Unfortunately, foreign lenders to the government of Belize do not have the same FAITH. They insist on being paid in foreign exchange, not in Belizean currency.

What this tells us about the economy, is that the government needs to save more foreign exchange in the reserves. Belize needs another $647 USA millions in our foreign reserves.

Hence, when the Education Department is planning a 10 year program of investing, a minor trickle of money in new schools and classroom building per year at the rate of $8 million Belize dollars annually, we don't have the money ourselves. So they borrow it from the World Bank to the tune of $80 million Bz. Why would the World Bank lend money to Belize to build schools if the money is so inflated? Well, they are going to insist that the money be paid back with interest in FOREIGN EXCHANGE. They are not interested in your Belizean currency. To make sure inflation doesn't get any worse, they are putting all kinds of strings on the loans and spending. What the World Bank does and IMF does, is figure what the GROWTH RATE is for Belize. This is why Musa and Fonseca are trumpeting in international forums that Belize has a 6% GROWTH RATE and project a 10% GROWTH RATE. If you use the GROWTH RATE as an indicator, it means the total annual government revenues are going to increase each year for the foreseeable future by that same amount. So, there will theoretically be some money to meet the interest payments, if not the principal on the loans. Of course, the kicker in all this, is you keep your fingers crossed behind your back when you sign those loan agreements. You wish and pray for no hurricanes hitting Belize during the next ten years. You pray and wish for sugar prices to go up. You pray and wish for some new industry to come into Belize to provide revenue and diversificiation. Praying is a bit like working with those one armed bandit slot machines. It's a gamble!

One interesting rough calculation is that at the current average government annual revenue, just paying back the loan money now outstanding from tax revenues as they stand right now this date of late May, 2000; it will take around 24 years and more, to pay back what we currently owe as a people, the loans the government has taken in your name.

There is also the fact, that theoretically the U.K. Will write off some loans if they fit poverty program investing. Now that our famous Peer of the Realm has fled Belize for Turks and Caicos and English politics and citizenship, the U.K. Just might give some debt forgiveness this year for fighting poverty programs. I suppose the house building can be called poverty programs, since the Belizean middle class are a lot lower than those in the U.K., for services and gadgets and comforts of an industrialized temperate zoned climate country. Anyway, poverty is what they are selling in Belmopan. Of course the U.K., poverty write offs last year on the loans we owe, were cancelled by the U.K. Supposedly, because of our fancy bi-national local bigwig investor, playing in the politics in England. So again, a little praying and keep your fingers crossed.

It is not clear if Taiwan will write off any loans, but you never know? Something could happen! Theoretically, once the mortgage scheme goes into action in a year or so, the Taiwanese loans will get met by mortgage sales to Barbados, whoever buys the secondary mortgages. So, the PUP are probably on the right track here with some of the Taiwanese loan money. The catch if any, is going to be changing Belizean currency mortgage payments into U.S. Dollars. Without adequate foreign reserves that is a nitty gritty point. It is hoped increased tourism will bring in more US dollar exchange and maybe, just maybe ,somebody in the government will actually put the money in foreign reserves and not spend it on something else. We are after all fighting inflation here. Trying to make the real value of the Belizean dollar now around .03 cents USA, actually be worth the official rate of .50 USA cents.

You will know when we have arrived as a country of stability and economic strength in the world, when the foreign reserves are more than the actual Belizean currency in circulation. When the Belizean dollar is not only actually worth the .50 USA cents, but may actually be worth more than the US dollar. Like in the Bahama's, Cayman Islands and Switzerland as examples. Then Belize will have really arrived!

Posts that reak of politics, politicians and political infighting do not interest me as these are the things that have brought Belize to the point where we are now.

How about some refreshing ideas on how to correct the situation based on non-political
idealism.

While we as individuals don't have the wherewithal to implement such actions, I am aware that there are people who read these posts that do.

My suggestion for immediate assistance in reducing the shortage of Belize Dollars and perhap