You’re standing at a colorful beach shack in Saint Lucia, a cold Piton beer in hand, and the guy behind the counter tells you it’s "fifteen dollars." You reach for your wallet, pull out a US ten-dollar bill, and suddenly everything gets... confusing. Are we talking US dollars? Eastern Caribbean dollars? Is there a difference?
Honestly, the eastern caribbean currency to us dollar relationship is one of the most stable yet misunderstood financial setups in the world. It’s a "hard peg." That basically means the value doesn't wiggle around like the Euro or the Yen. Since 1976, it’s been locked in tight. If you’re traveling to Antigua, Grenada, or St. Kitts, or if you’re just trying to figure out why your bank statement looks weird after a Caribbean cruise, you’ve gotta understand how this 2.70 magic number works.
The 2.70 Rule: Why It Never Changes
The Eastern Caribbean Dollar (XCD) is pegged to the US Dollar (USD) at a fixed rate of $2.70 XCD to $1.00 USD. It’s been that way for nearly 50 years. No joke. While the rest of the world watches their currency values rise and fall like a heart rate monitor, the Eastern Caribbean Central Bank (ECCB) has kept things rock steady.
Why? Stability. These are small island nations. If their currency bounced around every time oil prices shifted or a hurricane hit, their economies would be a mess. By tethering themselves to the US dollar, they get instant credibility. It makes trade easier. It makes tourism—the lifeblood of places like Saint Vincent and the Grenadines—way less of a headache for visitors.
But here is the catch. Just because the official rate is 2.70 doesn't mean you’ll always get that at the register.
Reality Check: What Rate Will You Actually Get?
If you walk into a local grocery store in Dominica or a boutique in Anguilla and pay with US cash, don’t expect the 2.70 rate. Most businesses use a "street rate" of 2.60 or 2.65.
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- Banks: Usually give you about 2.67 or 2.68.
- Hotels: Might give you 2.60 if they’re being generous; 2.50 if they aren't.
- Street Vendors: Almost always 2.60. It’s easier math for them.
Let’s say you buy a souvenir for $54 XCD. At the official rate, that’s exactly $20 USD. But if the vendor uses a 2.60 rate, they might ask you for $20.75 USD. It’s a small "convenience fee" for them having to go to the bank and exchange your foreign paper later. You’re basically paying for the privilege of not carrying local cash.
Does the US Dollar work everywhere?
Basically, yes. You can use US greenbacks in all eight territories that use the EC dollar: Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines.
But—and this is a big but—you will almost always get your change back in EC dollars.
The "Dirty Bill" Problem Nobody Tells You About
I’ve seen it happen a dozen times. A traveler tries to pay with a US $20 bill that has a tiny tear or a bit of ink on it. The cashier shakes their head. You’d think they’d be happy to take "real" dollars, right?
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Wrong.
The banks in the Eastern Caribbean are incredibly picky. If a bill is old, wrinkled, or damaged, the local bank won't accept it from the merchant. Therefore, the merchant won't accept it from you. If you’re bringing USD to exchange, make sure those bills look like they just came off the press. Crisp. Clean. No "character."
Smart Ways to Handle the Eastern Caribbean Currency to US Dollar Swap
If you want to save money, don't just wing it.
1. Use a No-FX Fee Credit Card
This is the pro move. When you swipe your card, the credit card network (Visa or Mastercard) usually gives you a rate very close to the official 2.70, often better than any local bank. Just make sure your card doesn't charge a "foreign transaction fee," otherwise you’re losing 3% right off the top.
2. The ATM Strategy
Withdraw EC dollars directly from an ATM. You’ll get the bank rate, and you’ll have local cash for the small stuff like bus fare or street food.
3. Avoid the Airport Exchange Desks
Just don't. The rates at the airport are notoriously bad. You're better off using an ATM in the arrivals hall than talking to a person at a booth.
Why the Peg Matters for Investors
If you’re looking at real estate in the Caribbean or doing business there, the eastern caribbean currency to us dollar peg is your best friend. It eliminates "exchange rate risk." If you buy a villa in Grenada today, you don't have to worry about the local currency devaluing by 20% next year and wiping out your equity.
The ECCB maintains a massive reserve of US dollars—usually way more than the 60% legally required—to back every EC dollar in circulation. As of 2025, their backing ratio has stayed consistently high, giving people total confidence that a $100 XCD bill isn't going to become worthless overnight.
Actionable Steps for Your Next Trip
- Check your bills: Before you leave the US, look at your cash. Any tears? Leave them home.
- Download a converter: Use an app like XE or even just Google "XCD to USD" before you head out for the day so you have the math fresh in your head.
- Ask the rate: Before you hand over a US bill at a restaurant, ask, "What’s your exchange rate?" If they say 2.50, maybe use your credit card instead.
- Keep small EC change: Taxis and local buses often "don't have change" for large US bills. Having 5s and 10s in local currency saves you from overpaying.
At the end of the day, the EC dollar is a fascinating bit of colonial history that actually works quite well in the modern world. It’s one of the few places where your money’s value is guaranteed by a 50-year-old promise. Just keep an eye on those street rates, and you'll be fine.
Final Tip: If you're heading to the British Virgin Islands (BVI), they are part of the OECS but they actually use the US Dollar as their official currency. No exchange needed there at all. For everywhere else in the chain, 2.70 is the number to remember.
Next Steps:
- Audit your travel wallet for "pristine" USD bills.
- Call your bank to verify if your debit/credit card has a 0% foreign transaction fee.
- Bookmark a live currency converter to check for any rare fluctuations in the mid-market rate before you buy local currency in bulk.