When you read Dominica's official fees, you usually see two figures side by side: one in "Eastern Caribbean dollars" (EC$ or XCD) and one in US dollars. This article explains where this currency comes from, which institution manages it and why its rate to the US dollar is fixed. The information comes from the official website of the Eastern Caribbean Central Bank (ECCB), checked on 24 October 2026.
The Eastern Caribbean Central Bank
According to the Bank itself:
| Topic | What the Bank says |
|---|---|
| Founding agreement signed | 5 July 1983, in Trinidad and Tobago |
| Official start | 1 October 1983 |
| Predecessor | the Eastern Caribbean Currency Authority (ECCA), established in March 1965 |
| Headquarters | Bird Rock Road, Basseterre, Saint Christopher (St Kitts) and Nevis |
| Main objective | the stability of the Eastern Caribbean currency and the integrity of the banking system |
The Bank describes itself as the "Monetary Authority" of eight island economies:
- Anguilla;
- Antigua and Barbuda;
- the Commonwealth of Dominica;
- Grenada;
- Montserrat;
- Saint Christopher (St Kitts) and Nevis;
- Saint Lucia;
- Saint Vincent and the Grenadines.
Anguilla became a full member on 1 April 1987.
How the currency union works
On its "Roles and Functions" page, the Bank lists three features of the currency union:
- one common currency that flows freely among the members;
- a common pool of foreign exchange reserves;
- a central monetary authority that decides the union's monetary policy.
According to the same page, the Bank's purposes are to regulate the availability of money and credit, to promote monetary stability, to promote credit and exchange conditions and a sound financial structure for the balanced growth of its members, and to promote their economic development.
| Body | Members | Role |
|---|---|---|
| Monetary Council | one minister from each member government | the highest decision-making authority; directives on monetary and credit policy |
| Board of Directors | ten: the Governor, the Deputy Governor and one director from each of the eight governments | policy and general administration of the Bank |
| Governor | the chief executive | day-to-day management |
So Dominica has a minister on the Monetary Council and a director on the Board, and shares in the region's monetary decisions. The Bank also says the Organisation of Eastern Caribbean States (OECS) has nine members and that the British Virgin Islands is the only one outside the Eastern Caribbean Currency Union.
The Eastern Caribbean dollar
| Date | Event |
|---|---|
| 6 October 1965 | first issue of the Eastern Caribbean currency; at first pegged to the pound sterling |
| 1976 | fixed peg to the US dollar |
| Today | the official currency of the Bank's eight member countries |
The central bank's "Currency" page gives the peg as "XCD 2.7 to USD 1.00, since 1976". The Bank explains the peg this way: the United States is the region's main trading partner, and the peg supports stability and confidence in the purchasing power of the Eastern Caribbean dollar.
Example: converting amounts at the peg
| Amount in US dollars | Calculation | Amount in EC dollars |
|---|---|---|
| 1 | 1 × 2.7 | 2.7 |
| 277.78 | 277.78 × 2.7 | about 750 |
| 200,000 | 200,000 × 2.7 | 540,000 |
For example, the company registration fee in Dominica, which Invest Dominica Authority gives as EC$750, is about US$278 at the peg; the same agency writes it as US$277. Royal Golden's contract amounts are set in US dollars.
Commercial banks
The central bank publishes the number of licensed commercial banks by country. On the day we checked, the list read:
| Country | Commercial banks |
|---|---|
| Anguilla | 2 |
| Antigua and Barbuda | 4 |
| Dominica | 2 |
| Grenada | 3 |
| Montserrat | 1 |
| Saint Kitts and Nevis | 2 |
| Saint Lucia | 3 |
| Saint Vincent and the Grenadines | 1 |
| Total | 18 |
The central bank also publishes the "Register of Financial Institutions Licensed under the Banking Act" and a register of institutions whose licences were revoked. If someone presents themselves as a bank or financial institution in one of these countries, look their name up in these registers.
Comparing bank charges
The central bank has published collated tables of the "general fees and charges" of licensed financial institutions, for personal and corporate accounts, as at 31 March 2026. Before choosing a bank, these tables are a good way to compare charges.
Other regional institutions
The central bank says that, as part of its development mandate, it helped create these regional institutions:
| Institution | Year |
|---|---|
| Eastern Caribbean Home Mortgage Bank (ECHMB) | 1996 |
| Eastern Caribbean Securities Exchange (ECSE) | 2001 |
| Regional Government Securities Market (RGSM) | 2002 |
What this means for a Dominica citizen
- Dominica's currency is shared by eight countries, so monetary policy is set by the regional central bank's bodies, not by the Government of Dominica alone.
- The fixed rate to the US dollar makes it easier to plan costs in dollars.
- Opening an account with a bank in Dominica follows that bank's customer due diligence and source of funds rules. Citizenship does not remove these checks. The article "Banks, the CRS and a second passport" explains this.
This article is general information and not financial or investment advice.
Sources
- Eastern Caribbean Central Bank, Who We Are — https://www.eccb-centralbank.org/who-we-are (checked on 24 October 2026)
- Eastern Caribbean Central Bank, Roles and Functions — https://www.eccb-centralbank.org/roles-and-functions (checked on 24 October 2026)
- Eastern Caribbean Central Bank, Currency — https://www.eccb-centralbank.org/currency (checked on 24 October 2026)
- Eastern Caribbean Central Bank, History of the EC Currency — https://www.eccb-centralbank.org/history-of-the-ec-currency (checked on 24 October 2026)
- Eastern Caribbean Central Bank, Commercial Banks (by country) — https://www.eccb-centralbank.org/commercial-banks-by-country (checked on 24 October 2026)
- Eastern Caribbean Central Bank, Regulation and Supervision — https://www.eccb-centralbank.org/regulation-and-supervision (checked on 24 October 2026)
- Invest Dominica Authority, Starting a Business — https://investdominica.com/?p=1540 (checked on 24 October 2026)