HiFX - Currency Exchange Specialists
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The Belizean dollar is pegged to the US dollar at the rate of two dollars BZ to one dollar US. Whereas US dollars are readily accepted as currency in Belize, this convenient fixed exchange rate does not apply to other foreign currencies. Therefore during closing periods you may be susceptible to risk due to fluctuating currency exchange rates.
For example, if you are a Canadian looking to buy property in Belize, you will inevitably need to transfer your US currency dollars to buy your property or arrange financing. If you had been looking to buy a property in Belize priced at $500,000 US at the beginning of January 2007 it would have cost you $592,000 CA. However, if you looked at that same property at the beginning of July 2007, it would have cost you only $528,000 CA. In other words, the same property would be $64,000 CA cheaper than it was at the beginning of the year. And if five years ago you had been looking to buy that same $500,000 US property, it would have cost you a staggering $809,000 CA. In other words, the same property is now $281,000 CA cheaper than it was five years ago. So it is important to pay attention to the exchange rate for your payments, or it could cost you a lot of money.
A firm named HiFX offers services that can reduce the risk due to fluctuating currency exchange rates. They have a free Currency Converter that you can use, and they can assist you in locking in an exchange rate for up to two years in the future to protect against currency fluctuations.
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