Public Information Notice - Removal of the Guarantee on the Canadian Dollar and the Pound Sterling
Basseterre, St Kitts,31 August 2004 Up to August 31, 2004 the Eastern Caribbean Central Bank (ECCB) guaranteed the rates at which it purchased and sold the pound sterling and the Canadian dollar from and to the commercial banks. This guarantee insulated the commercial banks and the public from any fluctuations in exchange rates taking place throughout the day in the international currency markets. On that basis, the commercial banks were able to offer to the public a daily fixed rate at which they purchased and sold these currencies. As part of the process to liberalise the financial markets in the region with a view towards stimulating the development of money and capital markets and ultimately economic development, the Bank has taken a decision to remove the guarantee on daily foreign exchange rates to commercial banks effective 01 September 2004. With the removal of the guarantee, individual banks will set the rates which they will offer their customers, taking into consideration any currency fluctuations that occur throughout the day in the international markets. The possibility exists therefore that the rates at which the commercial banks purchase and sell the pound sterling and the Canadian dollar may vary within a given day. The Eastern Caribbean Central Bank (ECCB) will provide the general public with indicative foreign exchange rates at the beginning of the day via its website and regional radio stations. These rates will not necessarily be the rates at which commercial banks will transact with the public. Hence, they only serve as a guide.
Eastern Caribbean Central Bank
CONTACT: Sybil Welsh, Acting Director, Corporate Relations Department
TEL: (869) 465-2537
FAX: (869) 465-9562
E-mail: eccbinfo@caribsurf.com
Website: www.eccb-centralbank.org
