Saint Vincent and the Grenadines: Currency & Financial System

Saint Vincent and the Grenadines uses the Eastern Caribbean dollar (XCD) as its official currency, a regional currency shared with seven other members of the Organisation of Eastern Caribbean States. The EC dollar replaced the British West Indies dollar in the mid-1960s and, since 1976, has been pegged to the US dollar at a fixed rate of EC$2.70 per US$1. As of 2026, that peg remains unchanged, giving the country a long record of exchange-rate stability that is uncommon among small island economies.

Currency issuance and monetary policy are handled not by a national central bank but by the Eastern Caribbean Central Bank (ECCB), a supranational institution established in 1983 and headquartered in Basseterre, Saint Kitts and Nevis. The ECCB serves all eight members of the Eastern Caribbean Currency Union, regulating commercial banks, managing regional foreign reserves, and working to defend the fixed peg to the US dollar.

This shared monetary arrangement has sheltered Saint Vincent and the Grenadines from the currency swings that have affected some of its neighbors, though it also limits the country's ability to set independent interest rates or pursue its own monetary stimulus. The domestic banking sector consists mainly of regional and international commercial banks operating under ECCB supervision, serving a small economy dependent on tourism, agriculture, and trade.