The Eastern Caribbean Central Bank has commemorated 49 years of the Eastern Caribbean dollar’s fixed exchange rate to the US dollar at EC$2.70 to USD 1.00, framing the peg as a key anchor for monetary stability in the Eastern Caribbean Currency Union. Governor Timothy N. J. Antoine highlighted the 7 July 1976 decision to shift the peg from pound sterling to the US dollar, citing the United States’ role as the region’s major trading partner at the time. He linked the arrangement to relatively low inflation over the period, averaging around two to three per cent, with an exception in 2022 when inflation reached nine per cent, and pointed to investor and public confidence supported by the absence of exchange controls and the central bank’s practice of maintaining reserves to supply foreign exchange to commercial banks when needed.
Eastern Caribbean Central Bank 2025-07-07
Eastern Caribbean Central Bank marks 49 years of the EC dollar peg to the US dollar at EC$2.70
The Eastern Caribbean Central Bank marked 49 years of the Eastern Caribbean dollar's fixed exchange rate to the US dollar at EC$2.70 to USD 1.00, emphasizing its role in monetary stability. Governor Timothy N. J. Antoine noted the 1976 shift from the pound sterling to the US dollar, attributing it to low inflation and enhanced investor confidence.