ECCB 2025-2026 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2026 (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 2025:

Level 1

Level 2

Level 3

$

$

$

Financial assets Commercial Paper

- -

8,113,067

- -

Derivative financial instruments Foreign investment securities Domestic investment securities

2,762

4,096,085,057 718,305,554

78,205 624,186

-

-

4,096,085,057 726,421,383

702,391

Level 1

Level 2

Level 3

$

$

$

Financial liabilities Derivative financial instruments

-

60,618

-

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 As of 31 March 2026, an amount of $25,323,484 (2025: $68,339,622) was allocated from net profit to general reserve to bring the general reserve ratio to the 5% target in accordance with the ECCB Agreement Act 1983. As of 31 March 2026, the general reserve ratio stood at 5.00% (2025: 5.00%), which was on target. As at 31 March 2026, the general reserve amounted to $307,958,072 (2025: $282,634,588).

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