ECCB 2023-2024 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2024 (Expressed in Eastern Caribbean dollars) 3. Financial risk management (continued) e) Fair value (continued) Fair value hierarchy

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 31 March 2024: Level 1 Level 2 Level 3 $ $ $ Financial assets Derivative financial instruments - 60,608 - Foreign investment securities 3,874,774,533 450,717,232 78,205 Domestic investment securities - - 624,186 3,874,774,533 450,777,840 702,391

Level 1

Level 2

Level 3

$

$

$

Financial liabilities Derivative financial instruments

-

25,297

-

77