Comprehensive Financial History Report of Dominica

Basic Information

• Country ISO Code: DM

• Official Language: English

• Language ISO Code: en

• Current Official Currency: East Caribbean Dollar

• Currency ISO Code: XCD

Monetary History of Dominica

Colonial Period and Currency Circulation

• During the colonial period, Dominica used various currencies including Spanish pieces of eight, British sterling coins, and other colonial currencies.

• The Spanish dollar was widely circulated throughout the Caribbean in the 17th and 18th centuries, including Dominica.

• British sterling coins became predominant after British control was established in the late 18th century.

Introduction of the East Caribbean Dollar

• In 1965, the East Caribbean Dollar (XCD) was introduced as the official currency for the Eastern Caribbean Currency Authority (ECCA), which included Dominica and other member states.

• The East Caribbean Dollar replaced the British West Indies Dollar at par and was pegged to the US dollar at a fixed rate of 2.70 XCD = 1 USD.

• The currency is issued and regulated by the Eastern Caribbean Central Bank (ECCB), established in 1983, succeeding the ECCA.

Currency Features and Usage

• The East Caribbean Dollar is subdivided into 100 cents.

• Coins are issued in denominations of 1, 2, 5, 10, 25, 50 cents, and 1 dollar.

• Banknotes are issued in denominations of 5, 10, 20, 50, and 100 dollars.

• Designs reflect the culture, history, and natural beauty of the Eastern Caribbean region.

Economic and Monetary Context

• Dominica’s economy is closely integrated with the Eastern Caribbean region, relying heavily on tourism, agriculture, and offshore financial services.

• The fixed peg of the East Caribbean Dollar to the US dollar provides monetary stability and facilitates trade and investment.

• The ECCB manages monetary policy, currency issuance, and regulation for Dominica and other member states, promoting financial stability and economic growth.

Summary Table

Additional Notes

• Dominica is a founding member of the Eastern Caribbean Currency Union.

• The ECCB is one of the oldest currency unions in the world, providing a shared monetary framework for its members.

• The East Caribbean Dollar is accepted across all member states, facilitating regional economic integration.

This report provides a detailed overview of Dominica’s monetary system, highlighting the use of the East Caribbean Dollar, its peg to the US dollar, and the role of the Eastern Caribbean Central Bank.