XCD (Eastern Caribbean Dollar)

What is the XCD?

The XCD is the ISO currency code for the Eastern Caribbean dollar, the official currency used by several countries in the Eastern Caribbean. It is divided into 100 cents.

Where it’s used

The Eastern Caribbean dollar is the shared legal tender of eight island states:
* Anguilla
* Antigua and Barbuda
* Dominica
* Grenada
* Montserrat
* Saint Kitts and Nevis
* Saint Lucia
* Saint Vincent and the Grenadines

These countries participate in the Organisation of Eastern Caribbean States (OECS), an economic and monetary union that coordinates policy among member states.

Brief history

• Introduced in 1965, the XCD replaced the British West Indies dollar at par.
• Initially the currency authority pegged the XCD to the British pound at 4.8 XCD = 1 GBP.
• In 1976 the peg shifted to the U.S. dollar at 2.7 XCD = 1 USD (about 0.37 USD per XCD).
• The Eastern Caribbean Bank (established in 1983) took over issuance and monetary responsibilities from the earlier currency authority.

How it’s managed

The Eastern Caribbean Central Bank (ECCB) (often referred to as the Eastern Caribbean Bank) manages the currency and monetary policy for member states. Its primary roles include:
* Issuing banknotes and coins
* Regulating liquidity in the banking system
* Promoting monetary and financial stability across member states

Maintaining the dollar’s peg to the U.S. dollar is central to ECCB policy, intended to support price stability and moderate inflation in the region.

Other Caribbean currencies

Several neighboring Caribbean nations use their own currencies and different exchange arrangements:
* Barbados: uses the Barbadian dollar (BBD), pegged at 2 BBD = 1 USD.
* Trinidad and Tobago: uses the Trinidad and Tobago dollar (TTD); it moved from a USD peg to a floating exchange rate in 1993.
* Jamaica: uses the Jamaican dollar (JMD), which floats and has experienced high inflation that reduced use of lower-denomination coins and notes.

Despite these differences, many Caribbean tourist destinations commonly accept major global currencies such as the U.S. dollar, British pound, and euro.

Key takeaways

• The XCD is the shared currency of eight OECS member states.
• It replaced the British West Indies dollar in 1965 and has been pegged to the U.S. dollar since 1976 at 2.7 XCD = 1 USD.
• The Eastern Caribbean Bank (ECCB) issues the currency and manages monetary stability across the member states.