The EC dollar remains stable amid a global environment marked by uncertainty and complexity.
That’s according to the Governor’s report to the 105th Monetary Council meeting of the Eastern Caribbean Central Bank (ECCB) on 21 July 2023 in Saint Vincent and the Grenadines.
The report addressed Monetary and Credit Conditions in the Eastern Caribbean Currency Union (ECCU) from January to June 2023.
It noted that monetary and credit conditions in the ECCU remain stable and accommodative, helping to anchor macroeconomic stability.Â
“The EC Dollar – the only legal tender in the ECCU – remains stable and has held steady for decades,” the report observed.
It disclosed that the foreign reserve backing for the EC Dollar remains strong.Â
“The current is 92.4 percent, well above the statutory minimum requirement of 60.0 percent,” the report noted.
The ECCB’s foreign assets are now around $5.2 billion compared with $5.04 billion at the end of 2022.
The pre-pandemic (2019) level was $4.58 billion.
The Monetary Council meeting in Saint Vincent and the Grenadines also learned that the ECCU banking system remains resilient and stable, maintaining high liquidity with robust capital buffers.
The stability is due solely to the fact that the EC is pêgged to the US dollar.
The foreign reserves are there to guarantee the existence of the EC – I think they are a requirement.
@Sabastiwn. And so, what is your point?
Yes @Sebastian please what’s you point? because I am not sure you are aware of how valuable the EC dollar is compare to some other currencies in the world.
The delusion of stability is due solely to the fact that the ECD is pegged to the USD; delusion being the operative word!
The fact is, the ECCU governor’s report is delusional twaddle used to pat himself on the back (you know, the part of the annual performance review where the reviewee gets to write up fiction to cover up for all the useless junkets he attended).
The reality of the USD is that it is no more the reserve currency for 87% of the world; nobody wants to use it anymore except for the insignificant countries (e.g., St. Lucia) who are vassals of the U.S., and are still waiting for crumbs to fall off their master’s table.
O.K., O.K., agreed lets move on; let’s talk about ‘a face – a symbol – something’ on the postage Stamps, that which I have a collection of hundreds from many different Countries. From a young teenager, collected Stamps; among the many of us at the time, I led a selective group of youngsters and we met mostly on Sunday afternoons.
Looking for some symbol today for our Stamp for the ‘Eastern Caribbean’ – I said a symbol, not the face of any person; I will submit ONE; since there are no other Island with anything near our most Majestic landmark than that of our great, wait for it – PITONS.
You may disagree, I don’t care, but find one of yours, its still the Gros & Petit PITON. Tourists from other Lands only view, love and remember what they admired most.
@Nudge, do you ever have anything positive to say. Its just a load of garbage from you every comment.
@Oh Really: Your superficial, narcissistic comment is just a reflection of your inability to deal with truth & reality objectively! Note the subjective words you use: positive; load; garbage.
The EECU governor’s report is correct only because the ECD is pegged to the USD (2.70:1); but the USD is not stable – more of the world’s economies are divesting their holdings of it. They’ve observed what the US does to any country which refuses to be vassals to it: steal their foreign reserves in broad daylight! They’ve observed how the US has been printing money (Quantitative Easing: pissing in our eyes & calling it rain) since the major crisis of finance capitalism in 2008, resulting in stagflation.
The net result is a devaluation of the USD, by 87% of the world population; which makes the ECD unstable by 2.7 times the instability of the USD. The ECCU is lying to you when he asserts that the ECD is stable – it is unstable because of the USD’s instability in the global environment!
By the way, @The Fox also has a problem dealing with reality. Note how he is desperately trying to change from the subject of this article to his nostalgic fantasies!
Here is a very short economic history of how & why our forefathers were sold into slavery; and how we were never truly freed, but were transitioned into debt slavery.
Is financial capitalism, ruled by the landlord class and banking class, the road to debt serfdom?
https://www.youtube.com/watch?v=uQrNTgfPvQ8