By Demion McTair Updated 5:37 a.m., Saturday, 11 April 2020, Atlantic Standard Time (GMT-4)
Basseterre, Saint Kitts and Nevis (ON SVG) – Governor of the Eastern Caribbean Central Bank (ECCB), Timothy Antoine says the Eastern Caribbean Dollar will remain strong throughout this period.
Governor Antoine, in a statement on the COVID -19 Pandemic, published on April 10, said “The EC dollar remains very strong. As of Friday, 3 April 2020, the Backing Ratio of our currency stood at 100.7%”.
“This is great news because it means that the buffers built up over many years will serve our Currency Union extremely well in this difficult period” – he added.
The Governor said the Central Bank anticipates that it will need to extend additional credit to governments and banks. He said the Central Bank is prepared, if necessary, to temporarily lower the Backing Ratio as additional credit is extended to governments and banks in a similar way, as the Central Bank has temporarily lowered the Discount Rate for governments and banks.
The Governor assured that the backing of the EC currency will remain far above the legal requirement at all times.
“As you may know, the ECCB Agreement requires a backing ratio of 60.0%. Thankfully, our Central Bank has significant foreign reserves and the EC dollar will remain strong throughout this period” – Antoine said.
The Eastern Caribbean Dollar is the official currency of the Eastern Caribbean Currency Union Countries. About eight (8) countries make up the union.
The Governor’s full statement can be viewed here: