The Eastern Caribbean Central Bank (ECCB) is marking the 50th anniversary of the Eastern Caribbean dollar’s fixed exchange rate with the United States dollar, a policy officials say has provided decades of economic stability across the region.

Speaking on InFocus, ECCB Deputy Governor, Dr. Valda Henry described the EC dollar’s peg of EC$2.70 to US$1 as one of the longest-standing currency pegs globally. She said the arrangement has fostered confidence among businesses, investors and citizens by ensuring a predictable exchange rate and shielding the region from currency volatility. She shared this story to demonstrate why the stability of the EC peg is so important:

Dr. Henry noted that the peg, established in 1976, was influenced largely by the Eastern Caribbean’s strong trade relationship with the United States. She added that the ECCB maintains significant foreign reserves to support the currency, with backing currently approaching 99 percent, well above the legal requirement of 60 percent.