Eastern Caribbean Bank Has Faith In Eastern Caribbean Dollar

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Eastern Caribbean Central Bank

Basseterre, St. Kitts – Nevis
October 04, 2010 (CUOPM)

Governor of the St. Kitts-based Eastern Caribbean Central Bank (ECCB) Sir K. Dwight Venner has given the assurance that citizens of the ECCU can have confidence in the strength of their dollar because the currency has a solid backing, which is well above the statutory requirement.

Sir Dwight says maintaining the stability of the Eastern Caribbean currency is the major achievement of the St. Kitts-based Eastern Caribbean Central Bank (ECCB) as it marked its 27th anniversary on 1st October.

He said maintaining the stability of the EC dollar is a tremendous achievement since there are few, if any, countries which have maintained an exchange rate peg for such a long period. The EC dollar has been pegged to the US dollar at a rate of EC$2.70 to US$1.00 for the past 34 years.

Sir Dwight says the stability of the EC Dollar is the anchor on which the development of the Eastern Caribbean Currency Union (ECCU) is based. It has also been the main driving force behind keeping the region’s financial system stable amidst the challenges with which it has been faced over the past few years.

The recent regional and international financial difficulties have given rise to concerns about the possible devaluation of the EC dollar. However, the Governor gives the assurance that citizens of the ECCU can have confidence in the strength of their dollar because the currency has a solid backing, which is well above the statutory requirement. In addition, a major policy objective of the ECCB and its member countries is to ensure that the fixed rate peg is maintained.

The ECCB was established on 1 October 1983 and is the monetary authority for eight countries ““ Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines. The mission of the Bank is to maintain the stability of the EC dollar and the integrity of the banking system in the Eastern Caribbean Currency Union.

Staff of the ECCB will mark the Bank’s 27th anniversary by worshipping together at church services in the ECCU member countries.

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