~Influenced by domestic and global financial market developments~

Willemstad/Philipsburg:---  The Centrale Bank van Curaçao en Sint Maarten (CBCS) has decided to reduce its reserve requirement by 0.50 percentage point to 18.50% while the pledging rate was lowered further from 5.25% to 4.75%. “The decision to adjust monetary policy is anchored by the normalization of economic and monetary conditions across the union. This easing of monetary policy is supported by a solid and stable foreign exchange position and adequate import coverage in the monetary union. In addition, the economies of the monetary union surpassed their pre-pandemic levels driven primarily by significant improvements in the foreign exchange generating capacity of the tourism sector”, stated executive director Dr. Jose Jardim. The decision to lower the pledging rate is also aligned with an anticipated further reduction of the federal funds rate in December 2024. As uncertainties persist, the Monetary Policy Committee (MPC) of the CBCS will continue to monitor the domestic and international economic developments closely, particularly the key indicators for monetary policy in the union, and make policy adjustments as needed. According to the latest estimate, the current account deficit of the balance of payments as a percentage of GDP dropped from 15.8% in 2023 to 15.4% in 2024. The underlying factors behind the lower deficit, such as an increase in net current transfers from abroad, remain in line with the September forecast. However, the deficit is higher than in the previous forecast due to a stronger-than-anticipated rise in imports. The higher import bill in 2024 was primarily driven by increased domestic demand, particularly due to robust investment growth across the monetary union. In addition, oil imports rose due to a combination of higher average international crude oil prices and more volumes purchased. Exports also grew, albeit at a slower pace than imports, driven primarily by higher foreign exchange receipts from the tourism and transportation sectors. Despite the current account deficit, gross official reserves are expected to increase in 2024, driven by strong inflows from external financing and capital transfers. Up to November 18, 2024, gross official reserves grew by NAf.60.8 million. The rise in reserves was mainly attributable to the transfers from abroad by pension funds, the World Bank in connection with the reconstruction of Sint Maarten, and the Dutch Ministry of Finance. However, the net purchase of foreign exchange and withdrawal of dollar deposits by the commercial banks (including those in Bonaire), combined with transfers abroad by other financial institutions, moderated the increase in gross official reserves.
The import coverage rose from 4.5 months at the end of 2023 to 4.6 months in November 2024 and is expected to remain at that same level in December 2024, which is still well above the norm of three months. Meanwhile, the liquidity of the commercial banks, measured by their current account balances with the CBCS, increased by 5.1% up till mid-November, driven by the transfers by pension funds, other financial institutions, and the governments of Curaçao and Sint Maarten from their accounts at the Bank to their accounts with the commercial banks.
After raising the reserve requirement by 1.00 percentage point in February 2020, the CBCS has maintained the percentage unchanged at 19.00% due to the excess liquidity in the banking system. “However, with the monetary union’s foreign exchange-generating capacity, particularly in the tourism sector, having improved and given the solid foreign exchange position and adequate import coverage, the CBCS has decided to reduce the reserve requirement by 0.50 percentage point to 18.50%, effective 16 December 2024”, Dr. Jardim explained. The reserve requirement is a monetary policy tool that obliges commercial banks to hold a certain percentage of their deposit base in a blocked account with the CBCS, which does not pay interest. Hence, the reserve requirement reduces the commercial banks’ liquidity as these funds are not available for transaction purposes.
The CBCS also decided to adjust the pledging rate for the second time this year, lowering it from 5.25% to 4.75%. Following two reductions in September and November 2024, market expectations indicate that the U.S. Federal Reserve (Fed) will cut its policy rate further in December. “Given the likelihood of another cut in the Fed funds rate, interest rates in the international money market are expected to decline over time gradually. Consequently, this will influence the interest rates in the money market of the monetary union of Curaçao and Sint Maarten, considering the peg of the NAf. to the U.S. dollar and justifying the reduction of the pledging rate”, Dr. Jardim stated.
Furthermore, CBCS will continue to offer attractive rates on its weekly auctions of CDs with the aim of holding more bank liquidity domestically to support the preservation of a solid foreign exchange position”, Dr. Jardim concluded.

Willemstad November 29, 2024
CENTRALE BANK VAN CURACAO EN SINT MAARTEN

WILLEMSTAD - Mr. drs. E. (Edson) Hato, MBA, has announced that he will continue his career elsewhere. As of the 1st of December 2024, he will stop as the representative of the Netherlands in Aruba, Curaçao, and Sint Maarten.

Mr. Hato: “I have fulfilled the role of representative of the Netherlands in Aruba, Curaça,o and Sint Maarten with great passion. It was an educational and intensive period in which I worked for fruitful cooperation between the four countries in the Kingdom. Although I can agree with the ultimate objective of this cooperation - a good relationship between the countries - I have a different view on the way in which we can achieve that goal. That is why I have decided, in good consultation, to return my assignment. In the coming period, I will focus on the next steps in my career. I thank everyone for their cooperation over the past period.”

Mr. Lapperre, Director-General of Kingdom Relations: “First of all, I would like to thank Mr. Hato for his efforts. He has dedicated himself to the Kingdom with heart and soul. I naturally respect his decision, thank him for the pleasant cooperation, and wish him all the best with the next step in his career.”

Mr. Hato was the Representative of the Netherlands in Aruba, Curaçao and Sint Maarten from 1 September 2023, based in Willemstad.

~Join us at the Sint Maarten Library for an Enriching Book Presentation!

PHILIPSBURG:--- The Sint Maarten Library is delighted to extend an invitation to the community for a special book presentation by Curaçaoan author Ange Jessurun. The event will highlight her latest novel, Faya Lobi, 200 jaar vurige liefde in de diaspora /Faya Lobi: 200 Years of Fiery Love in the Diaspora, a compelling narrative rooted in true stories.
This thought-provoking work intricately traces the rich history of Jessurun's family, traversing the cultural landscapes of Suriname and Curaçao. Through themes of love, resilience, and cultural heritage, Faya Lobi offers an unforgettable exploration of legacy and connection.
Join us for an enriching literary experience celebrating the power of storytelling and history.
The event will take place on Wednesday, December 4, 2023, from 3:30 PM to 5:00 PM at the Sint Maarten Library.
Faya Lobi : Published in 2022, Faya Lobi traces the captivating story of Jessurun’s great-grandfather, a Chinese immigrant who arrived in Paramaribo in 1865, and Emelia, a formerly enslaved woman freed in 1859. Their lineage unfolds through generations, including Antonius, who moved to Curaçao during World War II, where he fell in love with Angela—a descendant of plantation owner Jan Hendrik Specht. Combining personal memories, historical documents, and true accounts, Jessurun paints a vivid picture of Surinamese-Curaçaoan heritage.
Ange Jessurun: Born in Curaçao in 1954, Ange Jessurun is an educator, cultural advocate, and author dedicated to promoting native languages and cultural awareness. A microbiologist by training, Jessurun also studied Papiamentu, which she taught for years at Peter Stuyvesant College in Willemstad. She has co-authored numerous Papiamentu teaching methods and founded the prestigious Arte di Palabra contest for secondary students. Since 2009, she has coordinated multilingual Master of Education programs across the Caribbean.
Do not miss this unique opportunity to engage with Ange Jessurun as she shares the inspiration behind her novel, her family’s remarkable history, and her passion for preserving Caribbean heritage. Copies of Faya Lobi will be available for purchase, and the event will include a Q&A session with the author.
Join us in celebrating a story that honors the vibrant tapestry of our shared Caribbean history.
For more information about the event, please contact the Sint Maarten Library at 1721-542-2970.

Major of the Marines Niels Houtenbos took over command of the Marine Detachment on Sint Maarten on Thursday, November 28, 2024. He took over command from Major of the Marines, Arie Noordam. This happened during a ceremonial meeting on board HNLMS Holland. Several dignitaries were present during the ceremony, including the Governor of Sint Maarten, Mr. Ajamu Baly, President of Parliament Sarah A. Wescot-Williams and Prime Minister Luc Mercelina.
The new commander, Houtenbos, continues the current line of his predecessor. He is committed to ensuring that the Marine detachment is ready to be deployed quickly, now and in the future when the authorities request it. Within the Caribbean in general and on and around the Windward Islands in particular. In addition, he will focus on the planning and preparation for the new Support Center for the detachment.
Departing commander Arie Noordam looks back on a special period: “In recent years, we have provided military assistance several times, such as during the COVID-19 pandemic, after Tropical Storm Fiona (2022), after Hurricane Tammy (2023) and during the elections last summer. We also participated in several international exercises such as the Caribbean Urban Warrior (USA), the Eagle Eye (Saba & Statia), and Liamiuga (St. Kitts & Nevis).”
The Marine detachment on Sint Maarten consists of 29 soldiers, mainly marines, and is a Defense unit in the Caribbean. The detachment is divided into a Raiding Section, boat group, staff, and support personnel.