Published On: Wed, May 15th, 2013

Foreign exchange reserve decreased with 200 million in three years

Central Bank CuracaoWILLEMSTAD –  The foreign exchange reserve at the Central Bank continues to decrease. If at the beginning of the 2010 the reserve was 1.551 billion, it’s now at 1.321 billion, which is a reduction of more than 200 million guilders. This is according to the provisionary balance of the Central Bank till the month of April 2013. What’s remarkable about the balance is that the reserves have not known increases but continue to decrease.

For example, in January 2011 the country has started with a reserve of 1.593 billion and consistently this has seen a decrease. A year later (2012) the reserve has gone down to 1.488 billion. In January 2013 it was 1.419 billion.

In February of this year, the reserves have gone down to 1.401 billion; March 2013, 1.381 billion. In the first week of April 2013 it has reached 1.342 billion and finally in the fourth week of the same month it was down to 1.321 billion.

The Central Bank informs on its website that during the month of March 2013, it has focused its monetary policy on limiting the space on the local market. The percentage of the mandatory reserve, which is a very important instrument was increased with 0.25% to 15.50%. With this instrument, the banks’ liquidities and the increase in credit loans are influenced. Because of the increase in the mandatory reserve percentage and the commercial banks’ internal debt, the mandatory reserve has increased up to 372.1 million. The quantity of basic money has also increased with 10.6 million in March 2013 mainly as a consequence of the  increase of the banknotes and coins circulating (9.6 million). The net position of the Government has worsened with 27.8 million guilders. The post “Gold” in the “asset” section on the balance has increased with 7.3 million as a consequence of a higher value on the market compared to February 2013.

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