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HomeNewsLocal NewsECCB Commemorates EC Dollar 48 Years of stability

ECCB Commemorates EC Dollar 48 Years of stability

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by Kevon Browne

St. Kitts and Nevis (WINN): St. Kitts and Nevis (WINN)—For 48 years, the Eastern Caribbean (EC) Dollar has maintained its stability, pegged at a fixed rate of EC$2.70 to US$1.00.

 

Governor of the Eastern Caribbean Central Bank (ECCB), Timothy N. J. Antoine, highlighted the significance of this milestone, emphasising the confidence it brings to the Eastern Caribbean Currency Union.

 

The EC Dollar was first pegged to the US Dollar on 7 July 1976. Reflecting on this historic decision, Governor Antoine noted, “Once again, we are commemorating the anniversary of the peg. It was on July 07, 1976, that we first pegged the EC dollar to the US dollar, and today (July 07, 2024) is the 48th anniversary of the peg. This is a tremendous source of pride for our region because it represents stability.”

 

Governor Antoine elaborated on the benefits of this enduring stability. “The value of the dollar 48 years ago in terms of the parity is the same as it is 48 years later. It gives confidence, confidence to you, our customers, you the people of our currency union. You know the value of your deposits today is going to be the value inflation aside tomorrow because the parity is the same. You know you can come in and get your foreign exchange without any restrictions or foreign exchange controls, and for investors, you know that when you are ready to repatriate your profits your dividends, there are no controls. You can invest freely and you can recover your investment and repatriate freely.”

 

He also emphasised that the peg should not be taken for granted.

 

“[It] should never be taken for granted because there are many places around the world, not far from here, the currency union, but around the world where they do not have that experience. They do not have that stability, and I’m constantly reminded, especially by the business community, how important that stability is. The very important thing it does, it helps to manage inflation. I know, yes, in recent years, we’ve had the spike coming after the pandemic, but generally speaking, over these 48 years it has kept inflation relatively low. A lot of it [is] because we’re importing it from the US because of that peg. Long live the peg.”

 

The 48-year milestone of the EC Dollar peg stands as a testament to financial stability and provides confidence for the people and investors within the Eastern Caribbean Currency Union.

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