Assets Central Bank almost 4 billion
WILLEMSTAD - During the month of December 2015, the Bank continued to direct its monetary policy at a tightening of the surplus in the money market by auctioning more certificates of deposit (CDs). As a result, the outstanding amount of CDs rose by NAf.10.0 million. Meanwhile, the Bank maintained the percentage of the reserve requirement at 18.00%. Nevertheless, the amount of required reserves decreased by NAf.5.8 million due to the lower base amount1 upon which it is calculated.
Base money2 grew by NAf.12.9 million in December 2015 as a result of an increase in the currency in circulation (NAf.21.6 million) related to the higher demand for cash by the public in connection with the holidays. The growth in base money was mitigated by a decline in the current account balances of the commercial banks (NAf.8.7 million) caused primarily by the higher amount of outstanding CDs and the net purchase of foreign exchange at the Bank. Transfers by the government of Curaçao and the government pension fund of Curaçao (APC) from their accounts with the Bank to their accounts at the commercial banks moderated, however, the decline in the current account balances. In addition, part of the short-term credit extended to the commercial banks by the Bank was repaid. This repayment explains the decline by NAf.18.0 million in the item “Claims on deposit money banks” on the assets side of the balance sheet.
The item “Liabilities to nonresidents” declined by NAf.45.3 million due primarily to the purchase of debt securities by the Dutch Ministry of the Interior and Kingdom Relations (BZK) which were issued by the government of Curaçao. Furthermore, the Bank transferred part of the frozen deposits of a bank placed under the emergency measure to its account holders abroad.
The net position of the governments with the Bank improved by NAf.17.2 million due to a rise in the deposits of the government of Curaçao, related mainly to the aforementioned issuance of debt securities. The rise in deposits was, however, mitigated by a transfer by the government of Curaçao to its account at a commercial bank.
Finally, the item “Liabilities to other sectors” dropped by NAf.42.5 million due to the aforementioned transfers by the APC from its account at the Bank towards its account at a commercial bank and a transfer by USONA3 towards abroad. The latter transfer combined with the net purchase of foreign exchange by the commercial banks at the Bank largely explain the decrease in the item “Official reserves” by NAf.39.4 million.