Published On: Wed, Dec 5th, 2012

Foreign currency reserves continue to decline, reserves must be supplemented

WILLEMSTAD -  The stock of dollars and euros, needed to import goods, continues to decline. Therefore, the Central Bank decided to increase the “piggybank” money from commercial banks, the so-called reserve increase. This makes it harder for businesses and consumers to borrow money.

There is now almost 900 million guilders in cash at the Central Bank which cannot be used for loans. To turn the tide, financial experts say that the government should control its own spending and reduce it. Too little foreign currency means that eventually Curaçao can no longer pay its imports.

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