Published On: Tue, Jul 9th, 2013

Foreign exchange reserves in Curacao decreases from 1.551 billion to 1.306 billion

Central BankWILLEMSTAD – There is a worrisome development for the financial situation of Curacao. The foreign exchange reserve of the Central Bank continues to decrease. At the beginning of 2010 the reserves were 1.551 billion and now it stands at 1.306 billion, which is a decrease of almost 25o million guilders. Our foreign exchange reserves continues to fluctuate since October 10, 2010, but still decreasing. This is according to the provisory balance of the Central Bank till June 2013. It fluctuates and showed that in May there was a tendency to increase, but then it went down again. It can be said that in January 2011, the country started with a reserve of 1.593  billion and gradually it went down. A year later 2012 the reserve was at 1.488 billion and in January 2013 it was at 1.419 billion.

In February of this year, our reserves had decreased till 1.401 billion; in March it was at 1.381 billion. In April it reached 1.321 billion. In May it had a slight increase and went to 1.348 billion, but in June, in the first week it went down to 1.337 billion. In the second week 1.311 billion, then 1.293 billion and to at the end of the month 1.306 billion.

During the month of May 2013, the Central Bank continued its monetary policy directed at the contraction of the space on the capital market. Furthermore, the percentage of the mandatory reserve, which is the most important instrument, has not been changed from 15.75%. This instrument is used to influence the banks’ liquidity and therefore the increase of credits.

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