St. Lucia’s Prime Minister Phillip J. Pierre Thursday night launched the yearlong activities marking the 40th anniversary of the Eastern Caribbean Central Bank (ECCB) urging the financial institution to continue to play a leading role in the socio-economic development for the sub-region.
The ECCB serves the islands of Antigua and Barbuda, Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines, Sr. Kitts-Bevis, Anguilla, and the British Virgin Islands.
Pierre, who also serves as the chairman of the ECCB Monetary Council, told the ceremony held at the bank’s headquarters that the financial institution must continue to serve the people of the Eastern Caribbean Currency Union (ECCU) “whom we ultimately serve”.
He said in respect to its relationship with banks and other financial institutions, he is pleased that the ECCB is “working on a market framework to address these concerns” and also welcomed the plans for the introduction of deposit insurance.
“I also challenge the bank to continue constructive dialogue with credit unions and other indigenous institutions with a view of obtaining sustainability, continuity, efficiency and profitability,” he said, adding “as we reflect on the formative years of this institution and ongoing efforts to actualize its mission and vision, the achievement in the past 40 years are worthy of our collective commendation and applause.”
Pierre said since the inception of the “visionary agreement” establishing the ECCB in 1983, the ECCB has been an example of stability for the region, “a region, I hasten to add that has survived many shocks of various forms and duration, the most recent being the (COVID-19) pandemic”.
He noted that the ECCB agreement was forged during a period of “great economic uncertainty” adding that the “journey to its ratification and enactment was long and arduous framed by a transition from colonial role to independence and punctuated by a series of ….political integration and weather related events”.
He said the primary objective of the ECCB is to maintain the stability of the currency used by the islands within the sub-region as well as the integrity of the banking system.
He said the bank, since July 1976, has maintained the fixed exchange rate pegged to the US dollar at EC$2.70 (One EC dollar=US$0.37 cents) to one US dollar.
‘This arrangement has served the Currency Union extremely well. It has delivered relatively low inflation and confidence for both consumer and investors thereby facilitating a stable environment for growth and investment,” said Pierre, an economist.
“It is a fact that the EC dollar is one of the most stable currencies in the entire world,” Pierre said, adding that the advantage of the monetary union was clearly displayed during the pandemic “notwithstanding the complete shutdown of tourism, our lead foreign exchange earning industry.
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