The ECCB’s Timothy Antoine on currency union, cooperation and … – Central Banking

The Eastern Caribbean Central Bank is celebrating 40 years since its founding. What do you view as the main benefits of the Eastern Caribbean Currency Union?

The main benefit, without a doubt, is relatively low inflation over an extended period. Since 1976, we have pegged US$1 to EC$2.7. Our inflation is largely imported and typically tracks US inflation. That’s a big benefit as inflation is a pernicious tax, especially on the poorest and most vulnerable. Our monetary union has also provided