The ECCB has followed two previous agreements on strong links. The British Caribbean Currency Board (BCCB) was established in 1950 to issue the currency of most English-speaking Caribbean countries2. After independence, Guyana and Trinidad and Tobago withdrew from the BCCB to form their own central banks. His departure led to the dissolution of the BCCB in 1965 and the creation of the East Caribbean Currency Authority (ECCA). Grenada did not join the ECCA until 1968 for starting talks on a political union with Trinidad and Tobago.3 Barbados withdrew from the ECCA in 1974, after its government decided to set up its own central bank. The offshore financial sector is regulated and overseen by a large number of national regulatory frameworks (see Chapter 14 on Offshore Financial Centres). Each country has its own legislation for the offshore financial sector and its own supervisory authorities, as differences in legislation are an important part of countries` competition strategies. The role of the ECCB in monitoring the offshore sector varies from country to country. The Nevis Offshore Banking Act has been amended to designate the ECCB as the sole supervisory authority for offshore banks in this area. Offshore banking laws in Dominica and St. Vincent and the Grenadines were amended to give ecCB joint responsibility for overseeing offshore banks, but these changes were later reversed. As the supreme decision-making body of the ECCB, the Monetary Council, which sets out general policy guidelines, is composed of the Minister of Finance of each participating government.4 It is responsible for providing the Bank`s monetary and credit policy guidelines and guidelines, in accordance with Article 7, paragraph 2, of the Eastern Caribbean Central Bank Agreement Act 1983.
The Council is responsible for meeting at least twice a year, but in practice it meets at least three times a year to obtain the Governor`s report on the terms of money and credit and to provide policy directions and directions. The Governor and the Deputy Governor are appointed by the Monetary Council for a five-year term. Faced with the challenges of the 2008/2009 global economic crisis, the Monetary Council stepped up its activities and met in a series of extraordinary meetings. The exchange rate regime is largely free of restrictions9 Most current transactions were largely without restrictions in the 1970s, when responsibility for these transactions was delegated to commercial banks. The calculation of foreign trade capital, which has never been subject to restrictions in other Caribbean Community (CARICOM) countries, has been gradually liberalized since the mid-1990s.