I see no economic reason Belize can't accept the US dollar as its currency. El Salvador (pop. 6 million) dollarized during 2000-2001 and it worked. Apart from the expected confusion (mainly amongst poor people who couldn't read or write) during the transition period - Colones were phased out gradually - the country and its people benefited enormously from the change. Dollarization helped El Salvador recover quickly from the devastating earthquakes of January and February 2001.....there was no "local" currency to collapse.

Equador actually dollarized before El Salvador: http://ask.elibrary.com/login.asp?c=&host=ask%2Eelibrary%2Ecom&script=%2Fgetdoc%2Easp&query=pubname%3DThe%5FEconomist%26puburl%3D0%26querydocid%3D50073417%40urn%3Abigchalk%3AUS%3BL ib%26dtype%3D0%7E0%26dinst%3D0%26author%3D%26title%3DThe%2BAmericas%253A%2BMixed%2Bblessings%253B%2BEcuador%2527s%2Beconomy%2B%2B%26date%3D01%252D26%252D2002%26query%3DEcuador%2Bec onomy%26refid%3Dabacci%26maxdoc%3D10%26idx%3D0&title=The+Americas%3A+Mixed+blessings%3B+Ecuador%27s+economy++&pubname=The%5FEconomist&author=&date=01%2D26%2D2002&ctrlInfo=&refid=ab acci ..overall, a good thing it would seem.

Belize CAN easily afford to dollarize..if El Salvdor and Equador could do it - both of which had weaker economies per capita than Belize - then it would not be a great problem for Belize. The only thing stopping it is the fact that a few very wealthy people (politicians included) benefit from the artificially imposed black market exchange rates. They make fortunes from Belizean businesses and people desperate to change their Belize dollars to US dollars so they can pay for imported goods.