ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 - 2024

M onetary C ouncil P olicy S essions The Monetary Council launched its Policy Sessions in 2020, in response to the COVID-19 pandemic and to encourage collective action and closer collaboration within the OECS. Council members received and discussed presentations from technical officers of the ECCB and the OECS, on major policy issues confronting the region, and explored solutions for implementation. The last programme of the Policy Session which discussed “Credit Reporting in the USA,” was held in May 2023. Council requested that policy pieces on a number of other pertinent issues be circulated for their information and future consideration. Consequently, the Bank submitted five policy papers for the Monetary Council’s attention: 1. Cryptocurrencies; 2. Food and Nutrition Security II; 3. ECCB’s Reserve Management Function; 4. Case for More Systematic Labour Market Interventions in the ECCU: Labour Market; Strategies for the Region; 5. Supporting Businesses for Recovery, Resilience, and Transformation of the OECS; and Economies. The ECCB, through its networking meetings engaged the ECCU Financial Secretaries and Development Bank Executives. The Bank engaged one of its major stakeholders – Financial Secretaries – in July 2023 on the theme: “An Effective Fuel Tax Regime - Opportunities for Fiscal Coordination in the ECCU.” They used that forum to discuss a case study of the fuel price C onsultative M eetings with ECCU D evelopment B anks and F inancial S ecretaries

regime in one of the ECCB member countries. Engagements on best practices in fuel pricing and taxation in developing countries were held with the IMF technical team. Emanating from those discussions was a recognition that there was a need to reform the fuel pricing regimes to support fiscal sustainability and climate goals. To that end, the ECCB has been collaborating with the IMF to co-sponsor a regional workshop. The development banks, which play a pivotal role in the socioeconomic development of the ECCU, form a critical part of the financial landscape. Two consultative meetings were held with these institutions during the period under review. The first, in July 2023, featured presentations and discussions on the sustainability of, and financing opportunities for, the blue economy for economic development all under the theme: “Sustainability Through Development and Financing of the Blue Economy.” The second meeting, convened in January 2024, focused on one of ECCB’s strategic areas – digital transformation. The presentations and discussions centered on the theme: “Embracing Digital Transformation: Lessons from the Recent Pandemic.” I nternational M onetary F und 2024 ECCU C ommon P olicies C onsultation The IMF Annual Common Policies Consultation with the ECCB resumed in person for the first time since the pandemic and was held in January - February 2024. The Bank embraced the opportunity to engage the IMF on several policy issues, pertinent to the ECCU countries. The presentations discussed included: z Towards Efficient, Fair, and Sustainable Pension Systems in the ECCU; and

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