The Eastern Caribbean Central Bank (ECCB) says monetary conditions within the Eastern Caribbean Currency Union (ECCU), “remain accommodative”.
“Monetary and credit conditions improved during the first half of 2022, with growth in private sector credit being positive,” the ECCB said, noting that the ECCU’s stock of international reserves expanded to a level 12.1% higher than pre-pandemic levels.
At the end of June 2022, ECCB’s Forex reserves amounted to EC$5.3 B. For the period March 2020 to June 2022, the average monthly foreign reserves backing ratio was 96.4% vs the statutory requirement of 60%. The ECCB Monetary Council has maintained the minimum savings deposit rate at 2% and the ECCB discount rate at 2% for short-term credit and 3.5% for longterm credit. “Moreover, the banking system maintained its high degree of liquidity and capital buffers remained at robust levels.” says the ECCB. However, the NPL Ratio increased marginally to 11.8% vs 5% regulatory requirement. (LOOP)
Extract from the CARICOM BUSINESS Newsletter Vol 5 No 31
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