Governor Timothy Antoine of the Eastern Caribbean Central Bank (ECCB) has confirmed that the Eastern Caribbean (EC) dollar remains strong.
Governor Antoine who was the guest speaker at the Dominica Association of Industry and Commerce (DAIC) Eggs and Issues Breakfast on Thursday July 20 2017 said the anchor of the strategic framework the ECCB is using for transformation is a strong EC dollar.
The EC dollar he explained has been pegged to the US dollar 1 to 2.7 for the last forty-one years.
“That’s a tremendous achievement and I want to confirm to you this morning that our dollar remains strong, it is back at the moment by about 97.6%,” he said.
The governor explained that this means for every one EC dollar in circulation, there is 97.6 cents in foreign reserves, “principally US securities backing our dollar”.
The law he says requires a minimum of 67% saying, “on that front we check the box, strong dollar and that is our anchor”.
There are many benefits to having a strong dollar in the region he added. These include low inflation, confidence and free convertibility among others.
“Investors like that because they don’t have to worry about exchange risks so there are many benefits that we’ve experienced over time because of the strong dollar,” governor Antoine said.