What Is the XCD (Eastern Caribbean Dollar)?
Let me explain the XCD directly: it's the symbol for the Eastern Caribbean dollar, the official currency shared by eight Caribbean island countries—Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines.
This currency breaks down into 100 cents and has been in circulation since 1965, when it took over from the British West Indies dollar. That positions it as one of the oldest currencies still used in the region. As of September 2022, you'll find that 1 XCD equals about USD $0.37.
Key Takeaways
- The Eastern Caribbean dollar (XCD) is the official currency of the Organisation of the Eastern Caribbean States (OECS), replacing the British West Indies dollar in 1965.
- It is used on the island states of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines.
- The currency is managed by the Eastern Caribbean Bank and has been pegged to the US Dollar since 1976.
Understanding the XCD (Eastern Caribbean Dollar)
You should know that the Eastern Caribbean dollar acts as the official currency for the Organisation of the Eastern Caribbean States (OECS), an economic and monetary union set up in 1981 to align economic and trade policies among 10 islands in the Eastern Caribbean. However, only eight of those countries actually use the XCD. Martinique sticks with France and uses the euro, while the British Virgin Islands go with the U.S. dollar.
When it started, the Eastern Caribbean dollar replaced the British West Indies dollar on a one-to-one basis. The Eastern Caribbean Currency Authority handled its issuance and pegged it at 4.8 XCD to 1 GBP.
By 1976, the authority shifted the peg to the U.S. dollar at 2.7 XCD to 1 USD. Then, in 1983, the Eastern Caribbean Bank took over, keeping that U.S. dollar peg intact.
The Eastern Caribbean Bank's role includes regulating liquidity across member states and promoting economic and monetary stability by supporting development and maintaining a solid financial structure. They view the dollar peg as a key tool for price stability and keeping inflation under control in the region.
Other Caribbean Currencies
Even though these islands are small and close together, many Caribbean nations run their own currencies. Take Barbados: it once used the Eastern Caribbean dollar but switched to its own Barbadian dollar (BBD) in 1973, pegged at 2 BBD to 1 USD.
Over in Trinidad and Tobago, their dollar (TTD) is about as old as the XCD; it started with a U.S. dollar peg but shifted to a floating rate in 1993. Jamaica's dollar (JMD), issued by the Bank of Jamaica, also floats, and high inflation there has basically phased out lower-denomination coins and notes.
That said, despite all these different currencies in the Caribbean, most tourist spots will take payments in major global ones like the U.S. dollar (USD), British pound sterling (GBP), and the euro (EUR).
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