Grenada: Currency & Financial System

Grenada's official currency is the Eastern Caribbean dollar (XCD), which it shares with seven other members of the Organisation of Eastern Caribbean States. Grenada joined the regional currency arrangement in 1968 as a member of the Eastern Caribbean Currency Authority and later became a signatory to the Eastern Caribbean Central Bank Agreement in 1983.

The Eastern Caribbean Central Bank (ECCB), headquartered in Saint Kitts and Nevis, issues the currency and sets monetary policy for all eight members of the Eastern Caribbean Currency Union. Since 1976, the EC dollar has been pegged to the US dollar at a fixed rate of EC$2.70 per US$1, an arrangement intended to provide exchange-rate stability for Grenada's small, tourism- and agriculture-dependent economy.

The ECCB also regulates and supervises commercial banks operating in Grenada, overseeing implementation of regional banking standards and anti-money-laundering requirements across the currency union. As with other members of the union, Grenada has limited independent control over interest rates or monetary stimulus, relying instead on fiscal policy and regional cooperation to manage economic shocks such as hurricanes or shifts in tourism demand.