SER receives presentation on introduction of Caribbean Guilder

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Willemstad, June 20, 2023 – The Caribbean Guilder Project Team of the Central Bank of Curaçao and Sint Maarten (CBCS) gave a presentation to the Social and Economic Council (SER) of Curaçao last Friday, June 16, 2023, on the planned introduction of the Caribbean Guilder, presumably in the third quarter of 2024. Upon Curaçao and Sint Maarten’s acquisition of country status within the Kingdom of the Netherlands on October 10, 2010, both constitutions of Curaçao (Article 88) and Sint Maarten (Article 100) stipulate that there will be one supervisor (the CBCS) for monetary, financial and integrity controls. Regarding the joint central bank and relevant regulations, Curaçao and Sint Maarten made agreements in principle on November 26, 2008, which were subsequently enshrined, during the constitutional reforms, in the Central Bank Statute for Curaçao and Sint Maarten. They have as key points: the establishment of a common central bank as a public legal entity, and the creation of a single currency area with a common currency in a fixed exchange rate relationship to the U.S. dollar. The Central Bank Statute provides that the Caribbean guilder will be the official currency of the Countries (Article 1) and that the CBCS has the authority to set official exchange rates for foreign exchange, taking into account the value of the Caribbean guilder (Article 9). Among other things, discussion of possible “dollarization” has delayed the introduction of the Caribbean guilder. However, the focus is now on the implementation of this important monetary change.

The presentation of the Caribbean Guilder Project Team to the SER of Curaçao is an important step in preparing for the planned introduction of the Caribbean Guilder as it ensures transparency, engagement of social partners, and inclusive, sustainable economic growth. By possibly securing the SER’s endorsement, the project team can pave the way for a smooth and successful transition to the new currency, which in turn, can help foster economic stability and prosperity in the monetary union.