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Venner: Strength of EC dollar provides monetary stability

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St. Kitts and Nevis:  The Governor of the Eastern Caribbean Central Bank, Sir Dwight Venner has given an assurance that the EC dollar is doing well.

The question of devaluation surfaced in the media recently, after one ratings agency suggested that such a move was necessary for the sub-region.

ECCB governor Sir Dwight Venner says monetary stability has been maintained, as illustrated by the continued strength of the currency.

“This can be ascertained by the foreign key indicator,” the Central Bank Governor explained as he presented the ECCB 2012/2013 annual report.

He identified one of these indicators as “the backing ratio, which has averaged 96 per cent over the last financial year, substantially in excess of the legal  limit of 60 per cent.”

The import cover ratio, the inflation rate, and the “fairly high” levels of liquidity within the banking system were the other factors made reference to as being good indicators of the current strong showing of the dollar.

Central Bank officials had already given assurances in May that the EC dollar was not likely to be devalued over the next five years.