Eastern Caribbean Central Bank 2024-2025 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2024 - 2025

Governor’s Foreword

A t the conclusion of the 2024-2025 financial year, we find ourselves in a VUCAA world. This is a world characterised by volatility, uncertainty, complexity, ambiguity and anxiety (VUCAA) . VUCA originated from the US Army College in the late 1980s and early 1990s in response to the post Cold War reality. To this famed acronym, I have simply added anxiety, a very palpable phenomenon at this juncture in the international global order. During the past financial year, our region faced geopolitical and climatic shocks and the promise and perils of digitalisation and Artificial Intelligence (AI). Through it all, the resilience of our region shone through. Now, we look towards the 2025-2026 financial year ready to confront the challenges and seize the opportunities before us in our relentless pursuit of resilient prosperity for the people of the Eastern Caribbean Currency Union (ECCU). Guided by our core mission of advancing the good of the people of the Currency Union through monetary and financial stability , the ECCB continued to discharge these core mandates while advocating and sponsoring critical reforms. Notably, the EC dollar remained strong and stable at the rate of US$1 to EC$2.7, as it has been since July 1976. At the end of the year, the stock of foreign reserves stood at EC$5.5 billion and the foreign reserves backing of the EC dollar was 97.0 per cent–significantly above the 60 per cent statutory requirement. The Bank continued to pursue prudent financial management and recorded a net profit of EC$126.2 million , the highest in the Bank’s history. The Bank secured Board approval to implement key recommendations of its Compensation

During the financial year, the Bank spotlighted the Big Push–the goal to double the size of the ECCU economy over the next decade. As management, we led the ECCB team with agility, clarity, energy and empathy, as we sought to implement zealously strategic initiatives in support of the Big Push. Moreover, the ECCB deepened engagements with our communities, stakeholders and partners, nationally, regionally and internationally.

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