BELIZE CITY, Thurs. June 4, 2020– In Belize, as in many countries that are emerging from the COVID-19 pandemic lockdown, the economic picture has changed dramatically.
Apart from the record number of unemployed people around the world, governments in the Caribbean region are facing challenging times. As Belize was preparing to go into the first month of the coronavirus lockdown, on April 1, Prime Minister Dean Barrow said during a virtual press conference that the government would prioritize the purchase of essentials when making decisions involving the use of foreign exchange and that “the amount of foreign exchange that the commercial banks have on hand is adequate for the time being.”
That picture has apparently changed, because at the middle of last month the commercial banks in Belize dispatched a letter to their international credit card holders, limiting the amount that they can spend per month.
That restriction is an effort on the part of the banks to ensure that there is enough foreign exchange in the system to continue providing their services.
During the lockdown and especially after March 23, when the Philip Goldson International Airport was closed, the influx of foreign exchange earnings came to a halt.
In a letter to its credit card customers, the Belize Bank said that the pandemic and the closedown of countries had impacted foreign exchange, especially United States dollars.
“Consequently, local banks are now required to take steps to reserve the sale of United States Dollars to facilitate payment for the importation of essential goods and services,” the Belize Bank letter to its credit card customers said.
“To this end, please be advised that effective April 14, 2020, the credit limits on all International Credit Card accounts with limits greater than two thousand United States Dollars (US$2,000), will be temporarily reduced. The situation is being carefully monitored; as soon as the supply of United States currency normalizes, your previous limits will be reinstated,” stated the letter.
Last month Atlantic Bank followed the Belize Bank’s lead and it too placed restrictions on the spending limits of its customers with international credit cards.
”Locally, with the borders having been closed, foreign currency revenue earnings have all but come to as halt. At the same time, the Bank is obliged to ensure that we meet the foreign currency needs of our essential services providers,” explained the bank in a letter to its customers.
“A few weeks ago the Bank limited the use of your full credit card limit to only once per month. In continuing to support our efforts in this area we now advise that, effective June 1, 2020, your credit limit will be reduced, in line with your recurrent needs,” stated the bank.