The Commonwealth of Dominica is situated in the Lesser Antilles archipelago in the Caribbean Sea along with its closest neighbors, Martinique and Guadeloupe, between Puerto Rico and Trinidad and Tobago. Its geothermal-volcanic origins have given rise to lush rainforests, hot springs, and a diverse range of rare plants and animal species. Dominica is the Lesser Antilles’ youngest island. With its lush rainforests, hot springs, animals, rare plants, and bird species, the country has been named the Nature Island of the Caribbean. The island nation was colonized by France in 1632. In 1761, Dominica was captured by the British and became a permanent territory of Britain in 1805.
Agriculture is the island’s economic mainstay, employing about one-third of its manpower in the early 2000s. However, it is vulnerable to weather conditions. In 2003 and 2004, Dominica almost experienced an economic downturn but with its tourism, offshore services, construction, and sub-sectors of the banana industry, the nation grew in 2005 and 2006.
In the 19700s, Spanish silver dollars were circulating in the island nation. These were counter-stamped and pierced with heart-shaped or circular crenelated holes. The British Pound Sterling was also used until the introduction of the British West Dollar in 1935.
On October 1, 1983, the Eastern Caribbean Central Bank was established, which was governed by the East Caribbean Eastern Central Bank Agreement of 1983 and the Uniform Banking Act of 1993. In July 1976, the Eastern Caribbean dollar was introduced. The currency was pegged to the US dollar at a rate of EC$2.70 to US$1.00 and continues to be the official currency of Dominica and several other Eastern Caribbean nations.