sir k dwight venner : a broadbrush picture of the eastern caribbean central bank presentation by sir k dwight venner, governor of the eastern caribbean central bank, on the 2003 / 04 annual report, basseterre, 21 june 2004. * * * the presentation of this report on the operations of the bank during the fiscal year 2003 / 2004 is in accordance with article 48 ( 1 ) ( b ) which requires the institution to transmit such a report to each of the participating governments and to publish it. the monetary council has also agreed to this formal presentation to ensure that the public would be properly informed and educated on critical aspects of the bank ’ s operations and its impact on the economies of the currency union. the eastern caribbean central bank has its origins in the treaty of basseterre, june 18 1981, establishing the organisation of eastern caribbean states. article 3 outlining the purposes and functions of the organisation states in section 2 ( 1 ) “ to this end the member states will endeavour to coordinate, harmonise and pursue joint policies particularly in the field of currency and central banking. ” preamble ( eccb agreement 1983 ) the treaty of basseterre 1981 was followed by the agreement establishing the eccb in 1983. the preamble states : “ an agreement made on the 5th day of july 1983 between the governments of antigua and barbuda, the commonwealth of dominica, grenada, montserrat, saint christopher and nevis, saint lucia and saint vincent and the grenadines ( hereinafter referred to as the participating governments ” ) whereas it is desired to maintain a common currency to establish a common central bank with powers to issue and manage that currency, to safeguard its international value, to promote monetary stability and a sound financial structure, and to further the economic development of the territories of the participating governments. ” anguilla became a full member of the eccb in april 1987. the eccb has distilled its goal and mission statements from the preamble and has defined its ultimate goal as being to contribute to the balanced growth and economic development of its member states, while its mission statement is “ to maintain the stability of the ec dollar and the integrity of the banking system in order to facilitate the balanced growth and economic development of its member states. ” the eccb after deep reflection at every level of the institution - monetary council, board of directors, management and staff - has outlined its aspirations as an institution as follows : 1. to be

one of the leading institutions for policy research and advice ; 2. to be a model for the practice of modern management methods ; 3. to be an advocate for eccu and oecs regionalisation initiatives. the governance structure and arrangements of the bank comprises three elements : ( a ) the monetary council which is composed of the ministers of finance of the member countries. this is the highest decision taking body of the bank and article 7 ( 2 ) states that - ( b ) “ the council shall meet not less than twice each year to receive from the governor the bank ’ s report on monetary and credit conditions and to provide directives and guidelines on matters of monetary and credit policy to the bank and for such other purposes as are prescribed under this agreement. ” ( c ) the board of directors which subject to article 7 shall be responsible for the policy and general administration of the bank. ( d ) according to article 9 ( 4 and 5 ) the governor shall preside as chairman at the meetings of the board ; serve as chief executive officer of the bank to be in charge of and responsible to the board for the implementation of the policy and the day to day management of the bank. the bank has established three formal consultative arrangements with the following : ( a ) the ministries of finance in keeping with part ix of the agreement - relations with participating governments ; ( b ) the commercial banks in keeping with part viii of the agreement - relations with financial institutions ; ( c ) the private sector through a private sector consultative group as approved by the monetary council. the bank has made networking arrangements with institutions and agencies within the public and private sectors in the currency union. the bank is also committed with the full support of the council and the board to a full programme of public education and information on economic and financial matters. the principal role of the eccb is to be the central monetary authority of the eccu. its responsibilities are therefore to ensure the achievement of the purposes of the bank as set out in article 4 of the agreement as follows : to regulate the availability of money and credit ; to promote and maintain monetary stability ; to promote credit and exchange conditions and a sound financial structure conducive to the balanced growth and development of the eccu economies ; to actively promote through means consistent with its other objectives the economic development of eccu countries. the setting of objectives for both the short term and long term are critical for all institutions, including central banks. the manual of “ good transparency practices for monetary policy by central banks