Chronological Highlights of the Organisation
1950
- 1983
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The British Caribbean Currency Board (BCCB) was set up in Trinidad
and Tobago to serve Trinidad and Tobago, British Guiana, Barbados
and the current ECCB member states. The function of the BCCB
was generally viewed as that of a 'money changer' when a pound
sterling meant $4.80 everywhere in the Eastern Caribbean and
when every dollar issued by the BCCB had by statute to be backed
fully by a deposit of the equivalent in sterling into the BCCB's
account in London.
The East Caribbean Currency Authority (ECCA) was established
in March following the withdrawal of British Guiana and Trinidad
and Tobago to establish their respective central banks. Unlike
its predecessor, the ECCA was under no obligation to provide
100 per cent sterling backing for the currency which it issued.
Under the 1965 ECCA Agreement the foreign exchange cover for
the EC dollar was set at 70 per cent but this requirement
was reduced to 60 per cent 10 years later. Grenada, not an
original ECCA signatory, joined the Authority in 1968.
Barbados, an original signatory to the Agreement and the headquarters
of the Authority, left the union on March 31, having established
its own central bank.
The headquarters of the East Caribbean Currency Authority
was transferred to St Kitts in light of Barbados' withdrawal.
An amendment to the ECCA Agreement was passed which shifted
the link of the EC dollar from sterling to the US dollar.
The Agreement to establish the Eastern Caribbean Central Bank
(ECCB) was signed on July 5 by the governments of Antigua
and Barbuda, The Commonwealth of Dominica, Grenada, Montserrat,
St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines.
- The ECCB came into being on October 1, as successor to
the East Caribbean Currency Authority, following the enactment
of enabling legislation by the respective governments. The
establishment of the Eastern Caribbean Central Bank (ECCB)
served to deepen the regional integration process and to enhance
economic planning and development in the member territories.
The ECCB's overall objective is the promotion of monetary
stability and the building of a financial structure conducive
to balanced growth and development throughout the region.
At the time of writing, the ECCB is one of only four multi-state
central banks in the world.
- The first meeting of the ECCB Board of Directors was held
on October 5.
- The Bank Supervision Department was established in late
1983. The Department’s operations were centred on the
powers granted to the Bank under Article 3(2) of the Central
Bank Agreement to regulate Banking Business on behalf of and
in collaboration with Participating Governments; and also
Article 35(1) which specifically gives the Bank the right
to require Financial Institutions to open their books for
inspection to enable verification of compliance with the directives
issued.
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1984 - 1986
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1950
- 1983