ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Annual Report 2022 - 2023

Publications and Information Dissemination The Bank continued to provide the public with access to timely and objective information to assist in economic decision-making through economic reports. Consequently, during the year, the Bank prepared and published its bi-annual Economic and Financial Reports (EFRs). As in previous years, the reports sought to present a concise, pertinent and objective account of macroeconomic developments in all eight member countries, and aided citizens and businesses in making informed and strategic economic decisions. The Bank sought to enhance the reports by presenting them in a more concise and reader-friendly web-based format. Policy Papers and Presentations During the year, higher energy prices and consequently higher inflation affected member countries. As a result, during the year, the Bank focused on analysing the effects of the price of crude oil on the regional economic outlook and dissecting policy responses on inflation. The Bank prepared a Policy Note for discussion with key policy-makers to explore various policy options related to fiscal and renewable energy emanating from these developments. An episode of the Bank’s award-winning public education programme, ECCB Connects, focused on explaining the fuel price build-up in the member countries. Another areas of policy focus during the year was cryptocurrency. With the implosion of the centralised platform to store and trade cryptocurrencies, FTX, in November 2022, the Bank proactively responded by preparing a discussion note on the impact of crypto on macroeconomic stability. The paper sought to highlight some of the potential risks that this new form of decentralised finance could have on financial stability, if not properly managed and regulated.

Market (ECSM) and the chairperson of the Regional Debt Coordinating Committee (RDCC). Wendell Lawrence, the first chairperson of the RDCC, chaired the session. View the RGSM 20 th anniversary virtual panel discussion At the end of the year, member governments had raised almost EC$18.0 billion through the RGSM. The market remains a viable option for financing. Despite the success of the market since its inception, participation by retail investors has been low, accounting for only 1.5 per cent of total investments on the RGSM. The Bank is exploring initiatives to encourage participation of retail investors on the market. Country Surveillance During the year, the ECCB remained dedicated to promoting balanced growth, economic stability and development in all member countries, and for the citizens and residents of the ECCU. Therefore, the Bank continued to monitor and analyse local, regional and international economic developments to design meaningful policy for member countries. The surveillance output contributed to policy discussions and decisions within the Bank and with member country authorities. Those insights included: contributing to internal discussions on reserve management and collaborating with country counterparts in the Policy Units and revenue agencies as well as with other regional counterparts. As part of its surveillance function, the ECCB provided technical support to member countries during the International Monetary Fund’s Article IV missions and Staff Visits. Given the uncertainty in the global environment from continued geopolitical tensions and volatile commodity prices, the surveillance function became particularly critical to help the Bank assess the emerging risks and to facilitate coordinated policy action.

16