News Americas, New York, NY, November 14, 2024: The Monetary Council of the Eastern Caribbean Central Bank (ECCB) has introduced a series of new measures aimed at encouraging individual and small business participation in the Eastern Caribbean Securities Exchange (ECSE). The council has significantly lowered the minimum financial threshold for investment, lowering the barrier from EC$5,000 to EC$500 to facilitate wider engagement with the regional stock market.
These changes are part of the ECCB’s strategic initiative to democratize access to investment opportunities within its eight member territories, which include Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines. . ECSE, launched in 2001 as a fully electronic exchange, was created to provide a platform for regional investment, but individual investors have historically been underrepresented. Currently, approximately 98% of investors are institutional entities, leaving individual participation at a marginal 2%.
To address this gap, the ECB’s Monetary Council, which includes finance ministers from each member territory, not only lowered the entry threshold, but also recommended that a portion of future bonds and treasury bills be earmarked exclusively for investors. small ones. This protection aims to prevent institutional investors from monopolizing these financial instruments, while offering individual investors fairer access.
ECCB Governor Timothy Antoine emphasized the importance of public participation in the securities market, comparing the opportunity to common wealth creation practices in larger markets, such as the US, where Caribbean diasporic families routinely invest. Antoine explained that the ECB itself maintains significant holdings in US markets, as the US dollar is essential to member economies given its status as the currency for most of their external debt and import transactions.
Alongside the ECCB’s efforts, Finance Minister Dennis Cornwall emphasized the need to foster a culture of financial literacy and access to capital within the region. He outlined three key areas of focus for regional credit unions: promoting financial literacy from an early age, expanding access to capital — especially in underserved communities — and encouraging collaboration across sectors. These initiatives aim to equip citizens with the skills and resources to build sustainable wealth and support regional economic growth.
The announcement came at a recent conference held under the theme “Financial Empowerment through Wealth Creation: Investment Opportunities in the Eastern Caribbean Currency Union (ECCU).
