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| EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2018-2019
AREAS OF FOCUS 2019 - 2020
Monetary Stability
Maintain a strong and stable EC Dollar
Review and Adopt Revised Reserved Management Framework
The Bank will continue the implementation of the revised foreign reserve management framework as articulated in its Foreign Reserve Management Investment Policy. The following
deliverables are anticipated to be completed in the financial year 2019/2020:
Implementation of a third foreign reserve tranche for seeking relatively higher investment returns; and
Execution of the approved foreign reserve money manager framework.
Advise Monetary Council on Monetary and Credit Conditions Consistent with The ECCB Agreement
The Bank will not only continue to contribute to monetary stability through the established reporting mechanism, but also through the development of an integrated framework with analytical robustness. This
latter framework is intended to incorporate the various facets of macroeconomic analysis with a view to ensuring that the analysis, inclusive of forecasts, is robust.
With regards to currency management, the Bank will:
Issue of a new family of EC banknotes made from polymer, commencing in June 2019 with the $50. The polymer $100, $20 and $10 is forecasted to be issued in September 2019. Based on the existing stock
of paper $5, the polymer $5 will be issued in September 2020;
Conduct a vigorous coins drive to increase redemption of coins throughout the member states of the Eastern Caribbean Currency Union, commencing with St Kitts and Nevis as a pilot in August 2019;
Seek to improve in the processes and operations in the Currency Management Department with a new processing/sorting machine and upgraded Currency Management Software;
Introduce the use of a scientific method of currency forecasting in collaboration with De La Rue, the authorised printers of the EC banknotes;
Train and certify law enforcement officers to differentiate genuine and counterfeit EC banknotes, notably polymer; and
Continue training in
‘Know Your Money’
for cash handlers in the Eastern Caribbean Currency Union on the features of the EC polymer banknotes.
Financial Stability
Ensure a strong, Diversified and resilient financial sector
During the 2019/2020 financial year, the Bank will execute the following:
Complete the full implementation of the Risk-based Supervision (RBS) Framework, including for Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT);
Conduct AML/CFT and safety and soundness examinations at relevant licenced financial institutions using the implemented RBS Framework;
Continue to facilitate member territories’ preparation for the upcoming mutual evaluations;
Continue activities relating to Basel II/III implementation towards the target date of June 2020;
Engage in market sensitisation and training regarding AML/CFT and Basel II/III implementation;
Issue appropriate prudential standards aimed at minimising or eliminating regulatory risks; and
Finalise and issue the revised prudential returns and manual of instructions to all licensees.