By Robert Andre Emmanuel
Barbuda is set to host the 111th Meeting of the Eastern Caribbean Central Bank’s (ECCB’s) Monetary Council in July 2025, marking the first time the sister isle will be hosting the body in charge of ensuring the stability of regional economic governance.
The announcement came during the 110th Monetary Council meeting held in St Kitts on February 14, where Chairman Dr Ellis Webster, Premier and Minister for Finance of Anguilla, presented key economic developments and future directions for the currency union.
The two-day event will begin in Antigua on July 17 with a handover ceremony, where Prime Minister Gaston Browne will assume chairmanship of the Monetary Council.
The following day, members of the council will convene in Barbuda for the main meeting, bringing together finance ministers and government leaders from across the eight-member currency union.
During the current meeting’s presentation on Friday, the ECCB’s economic outlook painted an optimistic picture for 2025.
“The ECCU growth outlook remains positive in the range of 3.5 percent to 4.5 percent, with tourism, post-Hurricane Beryl reconstruction and investments in physical infrastructure expected to drive growth,” Dr Webster reported.
Responding to reporters’ queries, ECCB Governor Timothy Antoine addressed several aspects of the region’s financial landscape.
He highlighted the competitive nature of the ECCB’s minimum savings rate, stating, “The minimum savings rate is 2 percent, and that is one of the highest rates in the Caribbean. If it’s not the highest, it’s certainly one of the highest… all the other countries are under 1 percent.”
The Governor also clarified the central bank’s lending policies, explaining that while the ECCB doesn’t directly lend to businesses or individuals, it maintains specific borrowing rates for governments and financial institutions.
“The current rate for short term credit, which is credit of less than or up to one year, is 3 percent… and for credit in excess of one year up to 15 years, which we call long term credit, the rate is 4.5 percent,” Antoine detailed.
A significant development from the meeting was the council’s approval of an EC$25 million allocation for a food and nutrition security programme.
This initiative aims to support member countries in their efforts to reduce the region’s food import bill by 25 percent, addressing one of the region’s pressing economic challenges.
The council also reported strong financial indicators, with foreign reserves reaching EC$5.5 billion as of February 7, 2025, an increase from EC$5.4 billion in October 2024.
The backing ratio, which measures foreign assets against demand liabilities, stands at a robust 98.2 percent, underscoring the currency’s stability.
Looking ahead, the council identified several potential challenges, including policy shifts among major trading partners, volatility in Citizenship by Investment Programme revenues, and climatic shocks.
However, these are balanced against positive factors such as conducive credit conditions and ongoing financial sector reforms.
The meeting also highlighted progress in financial inclusion initiatives, with all licensed financial institutions implementing simplified procedures for opening bank accounts.
They reported discussions with the banking industry toward an April 2025 target for a unified rollout of these measures, making banking services more accessible across the currency union.
Before concluding the meeting, Chairman Webster commended the ECCB’s performance under Governor Antoine’s leadership, particularly noting the maintenance of currency stability despite global economic uncertainties.
“Keeping the currency strong … and then the communique we talked about – the backing ratio – and that is at 98.2 percent. This shows that the EC currency continues to remain strong in spite of the uncertainty that there is right now globally,” Webster remarked.
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