BASSETERRE, St. Kitts – TODAY (Oct. 1) marks 26 years since the establishment of the Eastern Caribbean Central Bank (ECCB) and according to bank Governor Sir K. Dwight Venner, the institution and its achievements over the years are a “source of great pride for the region’s people”.
Assessing the challenges and achievements that took place over the past 26 years, Venner noted that keeping the ECCB together and maintaining the stability of the EC currency have been the most prominent achievements.
“A stable currency means that the citizens of the ECCU can conduct their business with confidence, knowing that the value of their money will not fluctuate. A stable currency also contributes to the creation of a stable financial atmosphere, which is essential to attracting foreign investments,” Sir Dwight noted in his 26th anniversary address.
The ECCB was established in 1983 as the monetary authority for the countries of Anguilla, Antigua and Barbuda, the Commonwealth of Dominica, Grenada, St Vincent and the Grenadines, St Kitts and Nevis, Saint Lucia and Montserrat.
Since its inception, the ECCB has established a mission to maintain the stability of the EC dollar and the integrity of the banking system in order to facilitate the balanced growth and development of all member states.
Since 1976, the EC dollar has been pegged to the US dollar at a rate of EC$2.70 to US$1. This, Sir Dwight said, is a test of economic success in the Caribbean, noting that challenges abound for small countries with little financial and technical resources.
Venner said, “The ‘rules-based system’ and the collective arrangement of the Bank have also compelled the member countries to work together at the political and technical level to maintain the peg. In addition, the Bank has benefited from working closely with the Caribbean Development Bank, the International Monetary Fund, the World Bank and the international financial community”.
As the region pushes toward the three decade mark, the ECCB Governor said it is time for ECCU citizens to take greater personal financial responsibility.
“The sanctity of the currency lies not only with the people who work at the ECCB, but at the political level, the administrative level, the business community and how people conduct themselves.”
Today, the ECCB is the only central bank in the region that is International Financial Reporting Standards compliant and has been found competent in the financial sector assessment programmes, which assess the Bank’s capacity to regulate the banking system and the financial system as a whole.
