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 (continued) The following table presents the Bank’s financial assets and liabilities that are measured at fair value at 31 March 2023:

Level 1

Level 2

Level 3

$

$

$

Financial assets Commercial paper

- 254,367,980

-

Foreign investment securities Domestic investment securities

3,179,042,521 811,468,052

78,205 624,186

-

-

3,179,042,521 1,065,836,032

702,391

Level 1

Level 2

Level 3

$

$

$

Financial liabilities Derivative financial instruments

-

485,367

-

There has been no transfer in/out from level 3.

f) Capital risk management The Bank’s objectives when managing capital are:

 Safeguard the Bank’s ability to continue as a going concern;  Manage and safeguard the value of the Eastern Caribbean currency; and  Maintain a strong capital base to support its developmental activities. The Bank manages capital through the maintenance of a general reserve according to prescribed guidelines as mandated in the ECCB Agreement Act 1983. General reserve For the year ended 31 March 2024, an amount of $79,405,071 was allocated from net profit to General Reserve. In 2023, an amount of $54,520,799 was transferred from General Reserve to cover the net loss position of the Bank. As of 31 March 2024, the general reserve ratio stood at 3.92% (2023: 2.34%), which was 1.08% (2023: 2.66%) below the 5% target. As at 31 March 2024, the general reserve was $214,294,966 (2023: $134,889,895).

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