Grenada has been a member of the regional currency union, run by the East Caribbean Central Bank, since 1976. Since this bank ties the value of the East Caribbean Dollar to the United States Dollar, the currency of Grenada is by extension tied to any other currency which is matched at a rate to the USD (Yagci, 2001). With the transition of developing countries to uncouple their currencies from the US following the breakdown of the Bretton Woods systems in the 1970’s, most currencies now change rapidly against the ECD, as observed with the Euro from 2010 to 2013 (Caramazza & Aziz, 1998) (Eastern Caribbean Central Bank, 2013).
Grenada has also been susceptible to a number of financial crises, both from internal mismanagement and as a member of the larger global community. From 1980 until 2013, Grenada has suffered three major financial crises specific to the nation, the first from a military takeover of the government (1983), a second for an offshore banking scandal (1999) and the last from the devastation caused by two hurricanes (2005) which left many uninsured citizens with nothing (WTO, 2011).