EC currency marks 41st birthday

Last week Thursday an important member of the Organisation of Eastern Caribbean States marked its 41st birthday without much fan-fare.

That member was the Eastern Caribbean currency which was issued by the Eastern Caribbean Central Bank (ECCB) October 5, 1965.{{more}}

“The EC currency, which is issued and managed by the Eastern Caribbean Central Bank, continues to be a source of stability for the people of the ECCU, having been pegged to the US dollar at a rate of EC$2.70 to US$1, since 1976,” the bank said in a news release.

“The fixed exchange rate peg is in keeping with the Bank’s objective of monetary stability, which allows consumers and investors to conduct their business with confidence in the purchasing power of the EC dollar,” it added.

The bank said that in order to maintain the parity with the US dollar, the ECCB holds foreign exchange reserves to back the currency, in anticipation of future payments and obligations. The bank’s reserve of 96 per cent is above the statutory requirement of sixty per cent of the currency in circulation and other demand liabilities.

This year the ECCB celebrates 23 years as the monetary authority for the Eastern Caribbean Currency Union.