ECCB Monetary Council Discuss High Cost of Regional Travel and Food Security

By Caribbean Business Report 

The Monetary Council of the Eastern Caribbean Central Bank held its 110th on February 14th against the background of a global economic environment that is ‘pregnant with uncertainty’. The meeting noted that while growth in the Eastern Caribbean Currency Union continued to be propelled by Tourism and domestic-related construction activity in 2024, the high cost and inconvenience of intra-regional air connectivity continued to constrain trade and faster growth. 

Food and nutrition security were also high on the agenda with the Monetary Council, on the recommendation of the ECCB, approving an allocation of $25 million for a food and nutrition security programme in the ECCU from ECCB’s Fiscal Tranche II account. This funding will support the efforts of ECCU member countries as they strive to reduce the food import bill by 25 per cent. The Monetary Council also endorsed action encouraging financial institutions to make basic bank accounts available to their customers. This is supposed to make it easier for customers to open a bank account. The ECCU banking industry is targeting a unified rollout by April 2025. 

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The Monetary Council was told that the ECCU’s growth outlook for 2025 remains positive in the range of 3.5 percent – 4.5 percent, with Tourism, post-hurricane Beryl reconstruction and investments in physical infrastructure expected to drive growth. The ECCB also instituted measures aimed at lowering the risk profile of the Citizenship by Investment Programmes within the ECCU with the Interim Regulatory Commission selecting Lydia Elliott, Legal Drafting Consultant, to draft uniform legislation that would enable the establishment of a Regional Regulator for CIP/CBI in the ECCU. Stakeholders from Government, the CIP/CBI industry and social partners will be invited to share their views on the establishment of the Regional CBI/CIP Regulator in a series of in-country consultations commencing in March 2025.

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