The Central Bank of Curaçao and St. Maarten (CBCS) found it necessary to issue a press release (see related story) after Finance Minister Mike Ferrier said in Thursday’s paper that there were only two years’ worth of Antillean guilder banknotes left. The latter apparently led to media questions in Willemstad.
The minister’s statement was not directly contradicted, but CBCS explained that until the two countries in the monetary union decide on another joint currency the Antillean guilder would remain in circulation. The financial sector supervisor assured that meanwhile it will continue taking care of having a sufficient supply of banknotes to meet demand.
So far so good, but this issue remains unresolved for close to a decade. CBCS itself pointed out having done preparatory work to introduce the intended new Caribbean guilder “in anticipation of” dissolving the Netherlands Antilles per 10-10-10.
The bank goes on to say it is “currently in discussion” with both governments to reach agreement on the matter. Excuse us, but isn’t that what should have been done since back then?
Perhaps earlier problems with the supervisory board as well as management of CBCS played a role in delaying the process. However, in the end political decision-making is what will be required.
The bank’s former president-director Emsley Tromp strongly believed in dollarization, which certainly for St. Maarten where the US currency already dominates seems logical, but opinions differ among the experts. Nevertheless, it is high time to “cut the Gordian Knot” once and for all so that residents and the business community, including potential investors, may at least know what to expect in the future.
