ECCB Communications Workshop for ECCU Media Practitioners

Eastern Caribbean Central Bank

Limitations of Monetary Policy in the ECCU cont’d • Therefore, under a fixed exchange rate regime with open capital markets and under developed financial markets the scope to conduct independent monetary policy is marginal. The ECCB has sought to operate within these limitations by holding reserves in excess of the Statutory Limit (60 per cent) and the Operational Limit (80 per cent) as a cautionary measure.

• In fact as at the end of February 2026 the Backing Ratio was 99.3 per cent, significantly above both the legal/statutory and operational limits. The backing ratio as at the end of February 2026 reflected the Bank’s holdings of foreign reserves equivalent to cover 6.2 months of imports, more than twice the recommended ratio of 3.0 months.

Transforming The ECCU Together

3/30/2026

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