XCD is the currency code for the Eastern Caribbean Dollar, which is the official currency used by eight members of the Organisation of Eastern Caribbean States (OECS). The Eastern Caribbean Dollar is commonly abbreviated as EC$, and its symbol is $. The currency code XCD is part of the ISO 4217 standard, which defines currency codes for various currencies around the world.

Key Details about XCD (Eastern Caribbean Dollar):

1. Countries Using XCD:
   • The Eastern Caribbean Dollar is used by the following countries and territories:
     • Antigua and Barbuda
     • Dominica
     • Grenada
     • Saint Kitts and Nevis
     • Saint Lucia
     • Saint Vincent and the Grenadines
     • Anguilla (British overseas territory)
     • Montserrat (British overseas territory)
2. Central Bank:
   • The Eastern Caribbean Central Bank (ECCB) is responsible for issuing and managing the Eastern Caribbean Dollar. The ECCB regulates monetary policy, manages the currency’s value, and works to ensure financial stability within the member states.
3. Exchange Rate:
   • The Eastern Caribbean Dollar is pegged to the United States Dollar (USD) at a fixed exchange rate of 1 XCD = 0.37 USD. This means that 1 USD equals approximately 2.70 XCD. The fixed exchange rate helps to stabilize the currency and maintain investor confidence.
4. Banknotes and Coins:
   • The Eastern Caribbean Dollar is available in both banknotes and coins. Commonly used banknotes include denominations of EC$5, EC$10, EC$20, EC$50, and EC$100. Coins are issued in denominations of 1, 2, 5, 10, 25 cents, and 1 dollar.
5. Economic Importance:
   • The Eastern Caribbean Dollar facilitates trade and economic activity among the member states of the OECS, promoting regional integration and economic cooperation. The stability of the XCD, due to its peg to the USD, has been an essential factor in the economic development of the region.
6. Currency Symbol:
   • The symbol for the Eastern Caribbean Dollar is EC$, with “EC” distinguishing it from other dollar-denominated currencies, such as the United States Dollar (USD) or Canadian Dollar (CAD).

Importance of XCD:

1. Regional Stability:
   • The use of a common currency among the OECS member states fosters economic stability and reduces transaction costs in cross-border trade within the region. It also simplifies monetary policy coordination and management.
2. Tourism and Trade:
   • Tourism is a major industry in the Eastern Caribbean, and the stable exchange rate of the XCD helps attract tourists by providing predictable and reliable currency value. Additionally, the XCD plays a crucial role in facilitating trade within the region and with external partners.
3. Investment and Finance:
   • The stability of the Eastern Caribbean Dollar, due to its peg to the USD, provides a level of confidence for foreign investors and helps to maintain low inflation rates in the region.

XCD is the currency code for the Eastern Caribbean Dollar, the official currency of eight members of the Organisation of Eastern Caribbean States. Managed by the Eastern Caribbean Central Bank, the XCD is pegged to the US Dollar and is widely used in the region for trade, tourism, and economic activity.