The Eastern Caribbean Central Bank has commemorated the 50th anniversary of the Eastern Caribbean Currency Union's fixed exchange rate, under which the EC dollar was pegged to the US dollar at XCD2.70 to USD1.00 on 7 July 1976. The release presents the anniversary as a reaffirmation of the peg's role in the region's monetary framework, highlighting its contribution to low inflation, confidence in the EC dollar, trade and investment, and a stable environment for economic growth across the currency union. The bank noted that the parity was introduced after regional consultations and international approval involving the British government and the International Monetary Fund, and that it has been maintained for five decades without devaluation or revaluation. It also pointed to institutional safeguards under the ECCB Agreement, including a requirement in Article 24(2) to hold external reserves of at least 60.0 per cent of demand liabilities and currency in circulation, and a requirement in Article 17(2) for unanimous approval by both the Monetary Council and the Board of Directors before any change to the exchange rate parity can be made.
Eastern Caribbean Central Bank2026-07-07
Eastern Caribbean Central Bank marks 50 years of the EC dollar fixed exchange rate at XCD2.70 to USD1.00
The Eastern Caribbean Central Bank is marking 50 years since the EC dollar was fixed at XCD2.70 to USD1.00. It said the peg has been maintained without devaluation or revaluation and remains supported by reserve coverage and unanimous-approval requirements for any parity change.