Published On: Thu, Jan 3rd, 2013

Basic amount of money drops with 110.8 million

WILLEMSTAD – The basic amount of money, meaning the amount of banknotes and coins in circulation and the current account assets from the commercial banks with the Central Bank of Curaçao and St. Maarten (CBCS) decreased in November with 110.8 million guilders.This is due to a net decrease of the current account balance from the commercial banks with CBCS of 117.8 million guilders. This decrease is largely due to the net purchase of foreign currency with the CBCS and the increase of the obligatory reserve, according to the recent Abridged Balance from the CBCS.

The CBCS continued its monetary policy in November, which policy is focused on limiting the space on the money market. The percentage of the obligatory reserve, the most important monetary instrument, was increased with 1.00 percent point to 13.75 percent to moderate the growth in the private credit loans and to push back the surplus liquidity in the banking. Due to increasing the percentage of the obligatory reserve the outstanding amount on obligatory reserves increased with 52.8 million guilders.

The entry ‘Claims on banks’ on the assets side of the balance increased with 53.9 million guilders due to the Central Bank having granted a current account credit to a commercial bank – also in the month November. The entry ‘Deposits of non-residents’ on the liabilities side of the balance decreased in November with 33.6 million guilders. This decrease was mainly due to international transactions from a commercial bank on Bonaire from its account with the CBCS. Together with the net purchase of foreign currency by the commercial banks, these transactions led to a decrease in the entry ‘Foreign Currency’ on the assets side of the balance (147.6 million guilders).

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