ECCB 2017-2018 Annual Report and Statement of Accounts

122 ECCB ANNUAL REPORT 2017/2018 Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2018 (expressed in Eastern Caribbean dollars) 3. Financial risk management …continued f) Fair value …continued Fair Value Hierarchy (expressed in Eastern Caribbean dollars)

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

March 31, 2018

IFRS 7 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources; unobservable inputs reflect the Bank’s market assumptions. These two types of inputs have created the following fair value hierarchy: - Level 1: Quoted prices in active markets for identical assets and liabilities. - Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). - Level 3: Inputs for the assets or liabilities that are not based on observable market data. This level includes equity investments and debt instruments with significant unobservable components. The hierarchy requires the use of observable market data when available. The Bank considers relevant and observable market prices in valuations where possible. The following table presents the Bank’s financial assets and liabilities that are measured at fair value at March 31, 2018: Level 1 Level 2 Level 3 $ $ $ Financial assets Commercial paper 544,740,740 - - Certificate of deposits 289,060,688 - - Financial assets held for trading - 656,871 - Available-for-sale – foreign investment securities 3,157,667,399 - - Available-for-sale – domestic investment securities - - 624,186 3,991,468,827 656,871 624,186

Level 1

Level 2

Level 3

$

$

$

Financial liabilities Financial liabilities held for trading

219,130

-

-

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