Published On: Mon, Dec 31st, 2012

Central Bank: Required reserves now 900 million

WILLEMSTAD – In November, the Central Bank has aimed its monetary policy at tightening the space in the money market. The percentage of the reserve requirement, the main monetary instrument, was increased with 1.00 percentage point to 13.75 percent to moderate the growth in the private lending and reduce liquidity in the banking system.

This is according to the explanation given in the Abridged Balance sheet end of November, published last week published on the website of the Central Bank of Curaçao and Sint Maarten (CBCS). Due to the increase of the rate of compulsory reserves, the outstanding amount of compulsory reserves rose by 52.8 million. As of November 30, 2012 there was exactly 900 million guilders in compulsory reserves on the balance sheet of the CBCS.

The commercial banks receive no remuneration for this. The other policy of the Central Bank, the auctioning of so-called Certificates of Deposit (CDs), was not actively used. The CBCS focused during the biweekly auctions only on the refinance of the maturing CDs, whereby the outstanding amounts remains equal to CD’s.

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