Other associate members of the OECS do not use the Eastern Caribbean dollar as their official currency: theBritish Virgin Islands,Guadeloupe andMartinique. The British Virgin Islands were always problematic for currency purposes due to their proximity to theDanish West Indies, which became theUnited States Virgin Islands in 1917. Officially, the British Virgin Islands used to usesterling, but in practice the situation was more complicated and involved the circulation ofFrench francs andU.S. dollars. In 1951, the British Virgin Islands adopted theBritish West Indies dollar which at that time operated in conjunction with the sterling coinage, and in 1959 they changed over officially to theU.S. dollar.[2]
The combined population of the EC$ area is about 613,000 (2014 census and estimates[3][4]), which is comparable toMontenegro or the American capital city ofWashington, D.C. The combinedGDP is 5.46 billion US dollars,[5] which is comparable toBermuda.
The next attempts to introduce Britishsterling silver coinage to the colonies came with an imperial order-in-council dated 1825. This move was inspired by a number of factors. TheUnited Kingdom was now operating a very successfulgold standard in relation to thegold sovereign that was introduced in 1816, and there was a desire to extend this system to the colonies. In addition to this, there was that the supply ofSpanish dollars (pieces of eight) had been cut off as a result of the revolutions in Latin America where most of theSpanish dollars were minted. The lastSpanish Dollar was in fact minted atPotosi in 1825. There was now a growing desire to have a stable and steady supply of British shillings everywhere the British drum was beating. The 1825 order-in-council was largely a failure because it made sterling silver coinage legal tender at the unrealistic rating in relation to theSpanish dollar of$1 = 4 shillings 4 pence. It succeeded inJamaica,Bermuda, andBritish Honduras because the authorities in those territories set aside the official ratings and used the more realistic rating of$1 = 4 shillings. The reality of the rating between the dollar and the pound was based on the silver content of the Spanishpieces of eight as compared to the gold content of the Britishgold sovereign.
A second imperial order-in-council was passed in 1838 with the correct rating of$1 = 4 shillings 2 pence. In the years following the 1838 order-in-council, theBritish West Indies territories began to enact local legislation for the purposes of assimilating their monies of account with the British pound sterling. Gold discoveries inAustralia in 1851 drove the silver dollar out of the West Indies, but it returned again with the great depreciation in the value of silver that followed withGermany's transition to thegold standard between 1871 and 1873. In the years immediately following 1873, there was a fear that theBritish West Indies might return to asilver standard. As such, legislation was passed in the individual territories to demonetize the silver dollars. Even though the British coinage was also silver, it represented fractions of thegold sovereign and so its value was based on agold standard.
In 1946, a West Indian Currency Conference saw Barbados, British Guiana, theLeeward Islands,Trinidad and Tobago and theWindward Islands agree to establish a unified decimal currency system based on a West Indian dollar to replace the current arrangement of having three different Boards of Commissioners of Currency (for Barbados (which also served the Leeward and Windward Islands), British Guiana and Trinidad & Tobago).[6][7]
In 1949, the British government formalized the dollar system of accounts in British Guiana and the Eastern Caribbean territories by introducing theBritish West Indies dollar (BWI$) at the already existing conversion rate of$4.80 per pound sterling (or$1 = 4 shillings 2 pence). It was one of the many experimental political and economic ventures tested by the British government to form a uniform system within the British West Indies territories. The symbol "BWI$" was frequently used and the currency was known verbally as the "Beewee" (slang for British West Indies) dollar. Shortly thereafter in 1950, the British Caribbean Currency Board (BCCB) was set up in Trinidad[8] with the sole right to issue notes and coins of the new unified currency and given the mandate of keeping full foreign exchange cover to ensure convertibility at$4.80 per pound sterling.[6] In 1951, the British Virgin Islands joined the arrangement, but this led to discontent because that territory was more naturally drawn to the currency of the neighbouringU.S. Virgin Islands. In 1961, the British Virgin Islands withdrew from the arrangement and adopted the U.S. dollar.
Until 1955, the BWI$ existed only as banknotes in conjunction with sterling fractional coinage. Decimal coins replaced the sterling coins in 1955. These decimal coins were denominated in cents, with each cent worth one halfpenny in sterling.
In 1958, theWest Indies Federation was established and the BWI$ was its currency. However, althoughJamaica (including theCayman Islands and theTurks and Caicos Islands) was part of the West Indies Federation, it retained theJamaican pound, despite adopting the BWI$ as legal tender from 1954.[9] Jamaica, the Cayman Islands, and the Turks and Caicos Islands were already long established users of the sterling accounts system of pounds, shillings, and pence.
In 1964 Jamaica ended the legal tender status of the BWI$[9] andTrinidad and Tobago withdrew from the currency union (adopting theTrinidad and Tobago dollar) forcing the movement of the headquarters of the BCCB to Barbados[6] and soon the "BWI$" dollar lost its regional support.
In 1965, the British West Indies dollar of the now defunctWest Indies Federation was replaced at par by the Eastern Caribbean dollar and the BCCB was replaced by theEastern Caribbean Currency Authority or ECCA[8] (established by the Eastern Caribbean Currency Agreement 1965).British Guiana withdrew from the currency union the following year.Grenada, which had used the Trinidad and Tobago dollar from 1964, rejoined the common currency arrangement in 1968.[6] Barbados withdrew from the currency union in 1972, following which the ECCA headquarters were moved to St. Kitts.[6]
Between 1965 and 1983, the Eastern Caribbean Currency Authority issued the EC$, with banknotes from 1965 and coins from 1981. The EC$ is now issued by theEastern Caribbean Central Bank, based in the city ofBasseterre, in Saint Kitts and Nevis. The bank was established by an agreement (the Eastern Caribbean Central Bank Agreement) signed atPort of Spain on 5 July 1983.
The exchange rate of$4.80 = £1 sterling (equivalent to the old$1 = 4s 2d) continued until 1976 for the new Eastern Caribbean dollar.[1]
Until 1981, the coins of the BWI$ circulated. In 1982, a new series of coins was introduced in denominations of 1, 2, 5, 10 and 25 cents and 1 dollar. The 1 and 5 cent coins were scalloped in shape while the 2 cent coin was square. These three were struck in aluminum. The 10 and 25 cent coins were round and cupro-nickel. The dollar was aluminum bronze and also round. The round, aluminum bronze dollar coin was replaced in 1989 with a decagonal, cupro-nickel type. In 2002 new and larger round-shaped 1, 2, and 5 cent pieces were introduced, along with a new 1 dollar coin which was also round. The effigy of Queen Elizabeth II was also changed that same year on all coin denominations to theIan Rank-Broadley design, making it the last commonwealth currency up to that date to discontinue theArnold Machin portrait. Their compositions remained aluminum and cupro-nickel, respectively. Higher denominations exist, but these were issued only asmedal-coins. 1 and 2 cent coins were withdrawn from circulation in July 2015, and remained legal tender until 30 June 2020.[10]
In 1965, the Eastern Caribbean Currency Authority issuedbanknotes in denominations of 1, 5, 20 and 100 dollars, all featuring Pietro Annigoni's 1956 portrait of Queen Elizabeth II in regalia of the Order of the Garter.[11] The first issues in the name of the Eastern Caribbean Central Bank in 1985 were of the same denominations, with the addition of 10 dollar notes. The last 1 dollar notes were issued in 1989 and 50 dollar notes were introduced in 1993. On 1 April 2008, the Eastern Caribbean Central Bank issued a new series of banknotes which are like the preceding issues, except for omitting both the barcode and the country code letters which form part of the serial number on current notes.[12] In 2012, the Eastern Caribbean Central Bank issued a series of banknotes withBraille features in an effort to provide notes which are easier for blind and visually impaired persons to use. The raised Braille characters on the upgraded notes feature acricket theme in the form of balls and stumps. These characters have been added to the 10, 20, 50, and 100 dollar notes.[13][14][15]
In 2019, the Eastern Caribbean Central Bank introduced a new family of notes produced in polymer substrate and presented in a vertical format.[16]
Admiralty Bay in St. Vincent & The Grenadines, Map of theOrganisation of Eastern Caribbean States, silver compass rose, The Warspite schooner in Anguilla, brown pelican, tropical fish
The 2012 issue included raised braille elements for the visually-impaired in the form of a cricket ball and stumps. These were added to the EC$10, $20, $50, and $100 banknotes.[17]
Admiralty Bay in St. Vincent & The Grenadines, Map of theOrganisation of Eastern Caribbean States, silver compass rose, The Warspite schooner in Anguilla, brown pelican, tropical fish
Brimstone Hill fortress in St. Kitts, Map of theOrganisation of Eastern Caribbean States, silver compass rose, Les Pitons (volcanoes) in St. Lucia, sooty tern, tropical fish
Admiralty Bay in St. Vincent & The Grenadines, Map of theOrganisation of Eastern Caribbean States, silver compass rose, The Warspite schooner in Anguilla, brown pelican, tropical fish
Brimstone Hill fortress in St. Kitts, Map of theOrganisation of Eastern Caribbean States, silver compass rose, Les Pitons (volcanoes) in St. Lucia, sooty tern, tropical fish
