bywarren, you say "People with Belize dollars, no matter where they are held, will loose substantially when the economy of the country finally crashes." Are you referring to the purchasing power of the Belize dollar or the actual loss of the dollar itself. For example if I have $60,000 Belize dollars sitting in the Belize Bank and the economy crashes, will I wake up to less than $60,000?

One important factor for Belize to recover is to have currency that is accepted on the international market. Right now, the only thing that the Belize dollar is good for is to buy rice and beans or a joint. The Belize dollar has no value other than in Belize and the artifical value of 2 to 1 is just that, artificial. That is what I mean when I say the people of Belize will be hurt. Their Belize money will be practically worthless.

Individual Argentines lost big when their peso was devalued. To this day, they don't trust banks. When they are paid wages, they cash the check and convert the pesos to dollars (likely Euros of late) and they stash the cash at home. At least they are able to convert their money. Argentina's comeback from the brink is remarkable and Belize won't be so lucky.

I think I read somewhere an estimate that the true value of Bz$1 is US$0.06. Imagine what that would mean if it happened - Mexico would demand full value for its electricity, with maybe an 8-fold increase in costs. Same for any other "internal" costs actually denominated in hard currency.