ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

NOTES TO FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2016

3.

Financial risk management … continued

c)

Market Risk … continued

i) Interest rate risk…continued

As the Bank’s investments in foreign securities are locked in at fixed interest rates, the exposure to cash flow and fair value interest rate risk is limited to investments in money market instruments and money at call for which rates vary with market movements. As at March 31, 2016, if interest rates were to move by 25 basis points, profit for the year would have been $4.24M (2015: $3.39M) lower or higher.

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ECCB A nnual R eport 2015/2016