The EC Dollar remains strong after 46 years of being pegged to the US Dollar at a fixed rate of EC$2.70 to US$1.00 on 7 July 1976.
The Governor of the Eastern Caribbean Central Bank (ECCB), Timothy N.J. Antoine, says, “the peg means 46 years of a stable EC dollar on which we can rely; the value today is the value tomorrow and the next day.”
He added that over the 46 years, the EC dollar had experienced relatively low inflation, and in spite of a number of challenges over these 46 years, the ECCB continues to manage foreign reserves prudently, thereby maintaining the strength and stability of the EC dollar.
Governor Antoine says this stability provides the people of the Eastern Caribbean Currency Union (ECCU) and investors with a sense of confidence in its value.
“A stable EC dollar allows us to enjoy the benefits that some larger countries in our region and the other parts of the world do not currently enjoy.”
Governor Antoine gave credit to the founders and framers of the Monetary Union and all those who have served over the years including the ECCB Monetary Council; ECCB Board of Directors, and Management and staff of the ECCB and the people of the region.
“This is something of which we should be justifiable proud and long may it continue,” says Governor Antoine.
CONTINUE READING: Central Bank Records net loss of $49.1 million for the year ended 31 March 2022
The Eastern Caribbean Central Bank (ECCB) has published its 2021-2022 Annual Report and Statement of Accounts for the financial year ended 31 March 2022.
The Report, which was published on 30 June, reveals that the Bank recorded a net loss of $49.1 million for the year ended 31 March 2022 compared to a net profit of $25.2 million in the previous financial year.
The net loss for the year was largely driven by losses on foreign investment securities combined with a decline in interest income earned on foreign reserve assets, as interest rates globally remained at historically low levels over the year.
The Governor of the ECCB, Timothy N. J. Antoine said, “the current state of the global economic and geopolitical environment can be characterised as unprecedented and complex and the economies of the Eastern Caribbean Currency Union (ECCU), like the rest of the world, felt the weight of this difficult environment during the 2021/2022 financial year”.
He said, despite the weak global financial environment which resulted in the ECCB’s first
loss-making year in six years, the Bank continues to manage the reserves prudently thereby maintaining the strength and stability of the EC dollar.
Governor Antoine says that the 2022/2023 financial year opened with even more challenges than the previous year did and this reality will shape the Bank’s direction for the new year.