ECCB says no threat to EC Dollar

MyVueNews Staff-writer

Basseterre, St. Kitts, Monday, 3rd December, 2018, (MyVueNews.com) – Once again folks in the Caribbean have been speculating about the continued strength and value of the Eastern Caribbean Dollar.

The latest rumours, emerged after last week’s announcement of the sale of the Bank of Nova Scotia in a number of Caribbean countries, including St. Kitts and Nevis.

The ECCB issued a statement on Saturday, 1st December, 2018, dispelling the rumours and said, “It has come to the attention of the ECCB that there is some speculation that Republic’s acquisition of Scotia bank’s operations in the ECCU, could lead to the depletion of the foreign reserves that back the EC dollar. Such speculation is unfounded and unhelpful.”

The ECCB said it is clear and resolute about its mandate to protect the EC dollar and wishes to make it abundantly clear that it will continue to maintain very high levels of foreign reserves as it has done for the past 35 years.

The proposed acquisition of the Scotia Bank operations has also prompted discussion about the ownership of banking assets in the ECCU.

ECCB revealed however, that at present, 55 per cent of banking assets are owned by three Canadian banks and Republic Financial Holdings and 45 per cent of banking assets are owned by indigenous (national) banks.

The proposed acquisition, if approved, would not fundamentally change that ownership distribution, as 55 per cent of the banking assets would be owned by two Canadian banks and Republic Financial Holdings and 45 per cent of the banking assets would continue to be owned by our indigenous (national) banks, said ECCB.

It was further explained that even indigenous banks in the OECS are also seeking ways to consolidate their operations.

They added that “From time to time, there will be changes in ownership of banks.”

The ECCB is headquartered in St. Kitts & Nevis

(Featured is Eastern Caribbean Currency.)