Comprehensive Financial History Report of Grenada

Basic Information

• Country ISO Code: GD

• Official Language: English

• Language ISO Code: en

• Current Official Currency: Eastern Caribbean Dollar

• Currency ISO Code: XCD

Monetary History of Grenada

Early Currency Usage

• Initially, Grenada used various forms of currency including Spanish silver pieces of eight (also known as "royals"), which circulated widely in the Caribbean.

• In 1840, the British pound sterling was established as the official currency of Grenada, circulating alongside the Spanish dollars.

• The silver pieces of eight continued to circulate until they were demonetized in 1878 following the international silver crisis of 1873.

Transition to Dollar-Based Currency

• After demonetization of silver dollars, British coinage circulated but was reckoned in dollar accounts at a fixed conversion rate of 1 dollar = 4 shillings 2 pence.

• In 1909, the first private banknotes denominated in dollars were issued, circulating alongside sterling-denominated government paper money issued from 1920.

• The British West Indies dollar was introduced in 1935 as a unified currency for British Eastern Caribbean territories, including Grenada, replacing local dollars at par.

• Private banks continued issuing notes until 1941.

Introduction of the Eastern Caribbean Dollar

• In 1965, the Eastern Caribbean dollar (XCD) replaced the British West Indies dollar as the official currency in Grenada and other member states of the Eastern Caribbean Currency Authority (ECCA).

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

• The XCD has been pegged to the US dollar at a fixed rate of approximately 2.70 XCD to 1 USD since 1976.

Coins and Banknotes

• Coins: Denominations include 1, 2, 5, 10, 25, 50 cents, and 1 dollar.

• Banknotes: Denominations include 5, 10, 20, 50, and 100 dollars.

• Banknotes feature iconic landmarks, historical figures, and cultural imagery representing Grenada and the Eastern Caribbean region.

• Coins and banknotes are designed to reflect the unique heritage and natural beauty of the island.

Economic and Monetary Context

• Grenada’s economy is closely linked to the Eastern Caribbean region, with key sectors including tourism, agriculture, and services.

• The fixed peg of the Eastern Caribbean dollar to the US dollar provides monetary stability, facilitating trade and investment.

• The ECCB manages monetary policy, currency issuance, and banking regulation for Grenada and other member states, promoting regional economic integration and financial stability.

Summary Table

Additional Notes

• Grenada is a member of the Eastern Caribbean Currency Union.

• The Eastern Caribbean Central Bank is one of the oldest currency unions globally, providing a shared monetary framework for its members.

• The Eastern Caribbean dollar is widely accepted across all member states, facilitating seamless economic activity within the region.

This report provides a detailed overview of Grenada’s monetary history, emphasizing the transition from colonial currencies to the Eastern Caribbean dollar and the role of the ECCB in maintaining monetary stability and regional integration.

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