East Caribbean Dollar (XCD)

Basic Concepts of the Eastern Caribbean Dollar

The Eastern Caribbean Dollar (EC$) is the official currency of the Organization of Eastern Caribbean States (OECS), issued and managed by the Eastern Caribbean Central Bank (ECCB) under the currency code XCD and the symbol EC$. It is pegged to the United States dollar using a fixed exchange rate system at an exchange rate of EC$2.70 to US$1, ensuring regional economic stability.

Countries of Use

The Eastern Caribbean Dollar circulates in a number of Caribbean island countries and territories, including Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and the two British Overseas Territories of Anguilla and Montserrat. Together, these territories form the Eastern Caribbean Currency Union.

Units and denominations

The Eastern Caribbean dollar is divided into the primary unit, the dollar, and the secondary unit, the cent, with one dollar equaling 100 cents. Coin denominations include 1, 2, 5, 10, 25 cents and $1, while banknotes are available in denominations of $5, $10, $20, $50 and $100. All currencies are printed with regional landmarks, such as historical figures and natural landscapes, reflecting the cultural characteristics of the Caribbean.

Historical Background

The Eastern Caribbean dollar originated in 1949 when it replaced the British West Indian dollar and was initially pegged to the British pound sterling. 1965 saw the establishment of the Eastern Caribbean Currency Authority (ECCA) to unify the issuance of the currency; the Eastern Caribbean Central Bank (ECCB) took over the management in 1983 and established a fixed exchange rate with the US dollar. This monetary system has facilitated trade and financial cooperation among member States and contributed to the development of regional integration.