Eastern Caribbean dollar is strong, says central bank governor

The Eastern Caribbean dollar has been lauded as a strong currency by the governor of the Eastern Caribbean Central Bank (ECCB).

Speaking at the official ceremony to mark the change in chairmanship of the Eastern Caribbean Central Bank Monetary Council, Timothy Antoine, said that earlier this month the currency celebrated 41 years of exchange rate stability.

“That is our currency peg to the US [dollar] $1 to $2.7. Forty-one years is a remarkable fit and a durable testimony to the resilience of our monetary and it is something that we should celebrate,” he said.

“Today I confirm that our EC dollar is strong. As of Friday July 17th, the backing of our currency was 97.6%.”

He says the financial system has also strengthened with improvements in capital adequacy and profitability.

The ECCB recorded a $6.3 million profit for the financial year ending March 2017 after three consecutive years of losses.

Antoine explained that the losses recorded were because of low interest on its reserves on the US foreign securities market. A recent rise in rates has boosted the bank’s interest income.

The governor added that the ECCB has also worked internally to lower expenditure.