ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

circulation over the last five years is depicted in the graph below.

Painted Commemorative Circulation $1 Coin To commemorate the 50 th Anniversary of the Eastern Caribbean Currency Authority (ECCA) banknotes, the Bankcommissioned theRoyalCanadianMint toproduce a limited edition of one million painted commemorative circulation $1 coins (multi-ply nickel plated steel). The coins are the exact shape and size of the existing circulation $1 coin and bear some of the features of the ECCA $1 banknote. The obverse carries the usual Ian Rank-Broadley (IRB) portrait of Queen Elizabeth II. This product used pad printing technology which represents the next step in the evolution of painted coins, with a greater resistance to wear and tear. The painted coins comprise the second set of coins in the world to be minted using this technology, and the first in the western and northern hemisphere. The coins were distributed to the commercial banks for issuance to the public in October 2015 and were not redeemed once they were issued.

Chart I

Withdrawal of the 1 Cent and 2 Cent Coins The Bank took a decision to withdraw the 1-cent and 2-cent coins from circulation effective 1 July 2015. The main reasons for the withdrawal were: • Low redemption of the coins; • The cost of production exceeded the face value of the two denominations; • Low purchasing power of the coins; and • Low perceived value by the public. A rounding process, up or down to the nearest 5-cent increment, was introduced for settlement of cash transactions involving the 1-cent and 2-cent coins. As at 31 March 2016, a total of 33,600,000 1-cent coins and 14,220,000 2-cent coins had been withdrawn from circulation.

Painted Commemorative Circulation $1 Coin

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ECCB A nnual R eport 2015/2016