St. Kitts and Nevis - Money
Hurricanes notwithstanding, St. Kitts and Nevis enjoyed average annual GDP growth rates of 5 percent in the 1990s. Inflation has also been low, largely because St. Kitts and Nevis is a member of regional financial institutions such as the Eastern Caribbean Central Bank (ECCB). The Eastern Caribbean dollar, a currency shared with the 7 other members of the ECCB, is stable and has been pegged at a rate of EC$2.7 to US$1 for many years. Thus St. Kitts and Nevis is not too vulnerable to fluctuating exchange rates , although transactions with EU countries have been affected by the low value of the euro. There are plans for ECCB member countries to participate in a regional stock exchange, further integrating the economies of the small islands. In its 2000 analysis of the St. Kitts and Nevis economy, the IMF "considered that the exchange rate system operated by the Eastern Caribbean Central Bank has served the country well in maintaining macroeconomic stability and low inflation."
The ECCB is headquartered in Basseterre, and there are 3 major international banks as well as the international business companies (IBCs) that operate in the financial services sector.