The Eastern Caribbean Central Bank (ECCB) is celebrating 42 years since the E.C. Dollar has been pegged to the U.S. Dollar at a fixed rate of EC $2.70 to US $1.00.
According to a release from the St. Kitts based ECCB, “the E.C. Dollar was pegged to the U.S. Dollar on 7 July, 1976. Governor of the Eastern Caribbean Central Bank, Timothy N. J. Antoine said, this is a noteworthy achievement which has allowed the people of the Eastern Caribbean Currency Union to enjoy a fixed exchange regime.”
Noting that “free convertibility between the E.C. and U.S. Dollars, is not something that every country enjoys,” the ECCB Governor stressed that the stability of the E.C. currency has led to low inflation and has attracted Foreign Direct Investment which have worked towards the benefit of the people in the region.
A key element in maintaining the value and stability of the currency is the ECCB’s management of the region’s pool of foreign reserves which has allowed the peg to continue unchanged for the last 42 years.
Governor Antoine also attributed the stability of the E.C. Dollar to the founding fathers and framers of the currency union, including past Governors, the Monetary Council and the Board of Directors whose efforts, he said, have allowed the currency to stand the test of time even in a volatile global economy.