No casas de cambio in C.F.Z.
Given the current foreign exchange crisis in Belize, one of Government’s ideas was to make sure the commercial free zone was dollarised. To help with that process, G.O.B. suggested casas de cambios or currency changers for zone shoppers. But today, the man in charge of C.F.Z., Florencio Marin, told members of the Belizean and Mexican media that the casas de cambio will not be established inside the zone. And as for the recent disclosure that as much as ninety percent of zone business takes place in pesos, Marin says that while the people in the zone will now pay their bills and fees in U.S. dollars, businesses will continue to accept both U.S. and pesos. That announcement casts doubt on what role then the zone will play in increasing the circulation of foreign exchange. Jacqueline Woods reports.
Jacqueline Woods, Reporting
In a room with far more Mexican journalists than the local media, the management of Corozal’s Commercial Free Zone invited the press to speak about recent developments inside the Zone. Since December first, Belizean dollars are no longer being accepted in the C.F.Z., making it mandatory that all transactions take place U.S. currency or Mexican pesos. Florencio Marin, C.F.Z.’s chairman, says the regulations are as result of a decision made by the United Nations Security Counsel for all its member countries to undertake specific measures concerning financial transactions.
Florencio Marin, Chairman, C.F.Z. Management Agency
“We have always perceived that we were running a good operation here, but as far as I understand, the Security Counsel, and the Prime Minister reported it last Friday in the House of Representatives, has adapted resolutions that compels member governments to adapt certain measures for more transparency in the movement of capital and investment. Belize is no exception as part of the international community, that is why these things are falling in place. Because I think each country was given three months to report what they have put in place to co-operate with the mandate of the Security Counsel.”
In order to strengthen the flow of U.S. dollars, several companies will open U.S. accounts inside to zone to facilitate U.S. currency payments. Among them are the utility, the C.F.Z. Management Agency for fees collection, the Social Security Board and the Immigration Department. Marin, who denied reports that the U.S. dollar can illegally be bought in the Free Zone, says the measures are being put in place to prevent any foreign currency leakage.
Florencio Marin
“I’m not aware of any black market operating in the zone. What has happened is free zone businesses here are exploding and we are barely trying to catch up with improving infrastructure and putting the mechanisms to deal with the financial transactions. It has grown big that it has reached that stage, so that’s the way I see.
Mexicans don’t have to really come in with U.S. dollars, they could buy in pesos, because the two commercial banks operating within the free zone have corresponding banks across the border. Let me say that to my knowledge, Belize Bank’s corresponding bank in Mexico is Bancomel and Atlantic bank within the free zone corresponding bank is Mexico is Banamex. So, they have arrangements for the currency transactions.”
The C.F.Z.M.A. says they have briefed the merchants of the regulations and they have agreed to comply with the measures.
Vijay Punjabi, Owner, SP2000
“We are always taking pesos and U.S. dollars.”
Jacqueline Woods
“So you never did accept the Belizean dollar here?”
Vijay Punjabi, Owner, SP2000
“Belizeans are not allowed here to shop around. Usually, sometimes a Mexican brings a little bit of Belize dollars, but that will not make a big difference if you don’t accept it.”
Reporting for News 5, Jacqueline Woods.
According to businessmen interviewed today, on a whole, business inside the zone has been very slow.
