July 7 marks 36 years since the EC dollar has been pegged to the US dollar at a fixed rate of EC$2.70 to US$1.00.
Deputy Governor of the Eastern Caribbean Central Bank, Mr Trevor Brathwaite says the stability of the EC dollar provides the citizens of the Eastern Caribbean Currency Union (ECCU) with a level of certainty where they can make financial decisions with confidence knowing that the value of the currency will not fluctuate.
According to Mr Brathwaite, over the years, the foreign reserves backing of the EC dollar has been maintained at over 90 per cent, which is well above the legal benchmark of 60 per cent. He added that maintaining the peg has proven to be a sound decision, which contributes to the economic stability and development of the eight ECCB member states. Please click here to view statement by the Deputy Governor.
Did you know...
- The Eastern Caribbean Central Bank (ECCB) is the only institution that is authorised to issue and manage the EC currency. In carrying out its currency management functions, the ECCB’s principal focus is keeping the EC dollar strong and stable.
- The EC dollar has been pegged to the US dollar at a fixed rate of EC$2.70 to US$1.00 since 7 th July 1976. Through the peg, the value of the EC dollar remains stable. Consumers and investors can therefore conduct business with confidence in the purchasing power of the EC dollar.
- Any decision to alter the peg of the EC currency rests with the Monetary Council, the highest decision making body of the Eastern Caribbean Central Bank (ECCB).
- A strong EC dollar contributes to the achievement of a person’s economic and financial goals. Having a fixed exchange rate to our major trading partner, the United States, removes the uncertainty which results from fluctuations in the value of the US currency.
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