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ECCB celebrates 26th anniversary
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| Published on Thursday, October 1, 2009 | Email To Friend Print Version
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BASSETERRE, St Kitts -- Maintaining the stability of the EC currency is one of the Eastern Caribbean Central Bank’s (ECCB) main achievements as the Bank celebrates its 26th anniversary on 1 October.
Governor of the ECCB, Sir K Dwight Venner says the fact that the ECCB has been kept together for 26 years and that the EC currency has remained stable is source of great pride for the region’s people.
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 thus contributing to improved standards of living for the people and the economic development of the region.
The ECCB was established in 1983 as the monetary authority for eight countries – Anguilla, Antigua and Barbuda, the Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines. The mission of the Bank is to maintain the stability of the EC dollar and the integrity of the banking system.
Since 1976, the EC dollar has been pegged to the US dollar at a rate of EC$2.70 to US$1. This, Governor Venner says, is a test of economic success in the Caribbean, noting that trying to maintain the stability of the currency and the financial system on a whole is not an easy undertaking for small countries with little financial and technical resources.
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.
The ability to establish credibility at the regional and international levels has been another of the Bank’s successes over the past 26 years. According to Governor Venner, at its inception, the ECCB team had to convince the public that they could manage a currency.
The Bank has also been subjected to and passed many tests in the international system. Currently, the ECCB is the only central bank in the region which is IFRS [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.
As the region celebrates over two decades of financial and currency stability, Governor Venner says it is a 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.” | | | | Reads : 1833 | | | |
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