Status Caribbean guilder.

WILLEMSTAD / PHILIPSBURG:--- One of the strategic goals as included in the strategic plan of the Centrale Bank van Curaçao en Sint Maarten (CBCS), is to start with the preparations to realize the introduction of a new currency for the Countries Curaçao and Sint Maarten, i.e. the Caribbean guilder. With the dissolution of the Netherlands Antilles on October 10, 2010, where both Curaçao and Sint Maarten became constituent countries within the Kingdom of the Netherlands, the Countries have agreed, among others, to form one monetary union and to introduce a common currency, which has also been laid down in the Central Bank Statute for Curaçao and Sint Maarten and in the Regulation on a Common Monetary System for Curaçao and Sint Maarten (Regeling Gemeenschappelijk Geldstelsel Curaçao en Sint Maarten).

Given that the monetary union is the basis for the common currency of both Countries, the first step for the CBCS is to facilitate the governments with the evaluation of the monetary union. When consensus is reached on the continuation of the monetary union between Curaçao and Sint Maarten, the CBCS will take the next steps for the introduction of a new currency.

The mentioned target date of January 2021 for the introduction of the Caribbean guilder is subject to the possible decision of the Countries to introduce the new currency and the expected lead time for production of a new currency.

Like the Netherlands Antillean guilder (NAf), the Caribbean guilder (CMg) will also be pegged to the United States dollar meaning USD 1 = CMg 1.79. Should eventually be decided to continue with the monetary union and hence introduce the Caribbean guilder, the Netherlands Antillean guilders will be exchanged for the Caribbean guilder on a one-to-one basis. This one-to-one ratio has been laid down in the Regulation on a Common Monetary System for Curaçao and Sint Maarten.