Caribbean guilder

The Caribbean guilder (Dutch: Caribische gulden) is a proposed new currency of Curaçao and Sint Maarten, the Caribbean islands which became "landen" (constituent countries) within the Kingdom of the Netherlands, following the dissolution of the Netherlands Antilles on 10 October 2010. The Caribbean guilder would replace the Antillean guilder at par and be pegged to the US Dollar. In November 2020, the Caribbean guilder was announced for circulation in 2021.[2]

Caribbean guilder
Caribische gulden  (Dutch)
Denominations
Pluralguilders
SymbolCMg,[1] CMƒ, or ƒ
Banknotes
 Freq. used10, 20, 50, 100, 200 guilder[1]
Coins1, 5, 10, 25, 50 cents;
1, 5 guilder[1]
Demographics
User(s)proposed in
 Curaçao
 Sint Maarten
Issuance
Central bankCentral Bank of Curaçao and Sint Maarten
 Websitewww.centralbank.cw
Valuation
Pegged withU.S. dollar = ƒ1.79

Since 2018 Antillean guilder banknotes and coins, which were no longer in production pending decision on the Caribbean guilder, required replacement, as[3] there were only two years of Antilles guilder remaining. Also the possibility that the islands would adopt the U.S. dollar or euro were evaluated.[4]

Negotiations

The Netherlands Antillean guilder continued to circulate after the dissolution of the Netherlands Antilles and plans to implement the Caribbean guilder were not finalized until both countries would agree to have a common currency[5] The new currency will be abbreviated CMg (for Curacao, Sint Maarten guilder) and would be pegged to the United States dollar at the same exchange rate as the Netherlands Antillean guilder (1 USD = 1.79 NAg = 1.79 CMg).[6] As the BES islands (Bonaire, Sint Eustatius and Saba) adopted the U.S. dollar directly on 1 January 2011, the introduction of the CMg would mean the end of the circulation of the Netherlands Antillean guilder.

In April 2014, Curaçao and Sint Maarten agreed to look into the possibility of Curaçao having its own central bank. As long as further negotiations continued, the Caribbean guilder would not be introduced.[7] In July 2015, the Minister of Finance of Curaçao, José Jardim, stated that research on a monetary union between Curaçao and Sint Maarten was not a priority.[8]

Former Curaçao MP Alex David Rosaria cited a major problem with the proposed union is the lack of a forum to discuss macroeconomic coordination (as there is for the Eastern Caribbean dollar).[9]

In November 2019, Curaçao Minister of Finance Kenneth Gijsbertha confirmed the introduction of the Caribbean guilder in 2021,[10] and the Central Bank announced it a year later.[2]

Organization

The currency is planned to be issued by the Central Bank of Curaçao and Sint Maarten (the successor of the Bank of the Netherlands Antilles) which is chaired by a chairperson chosen by both islands' prime ministers. The two islands would also appoint six further members of the supervisory board of directors. The currency would be phased in over three months.[1] The ​2 1⁄2-guilder coin and the 25-guilder notes present in the Netherlands Antillean guilder series would not be issued and 20- and 200-guilder banknotes will be added.[1]

References
  1. "FAQ - Central Bank". Central Bank of Curaçao and Sint Maarten. Archived from the original on 26 July 2014. Retrieved 24 February 2014.
  2. "Central Bank announces introduction of Caribbean Guilder in 2021". StMaartenNews.com. 15 November 2020. Retrieved 8 December 2020.
  3. "Banknotes and coins should soon be replaced". Curaçao Chronicle. 15 February 2016.
  4. "Only two years worth of Antillean guilders left". The Daily Herald. 13 June 2018. Archived 19 October 2019 at the Wayback Machine
  5. "Curacao wants its own Central Bank". Curacao Chronicle. Retrieved 2 April 2014.
  6. "Nieuwe Caribische gulden wordt CMg" (in Dutch). persbureaucuracao.com. 21 October 2010. Archived from the original on 22 January 2018. Retrieved 22 October 2010.
  7. "Onderzoek naar eigen Centrale Bank voor Curacao" (in Dutch). BearingPoint Caribbean. 1 April 2014. Archived from the original on 22 January 2018. Retrieved 31 December 2015.
  8. "Jardim: Research Monetary Union Is Not A Priority". Curaçao Chronicle. 15 July 2015. Retrieved 31 December 2015.
  9. "Dysfunctional Union Curaçao & St. Maarten". Curaçao Chronicle. 2 March 2018.
  10. "Caribbean guilder becomes reality". Curaçao Chronicle. 14 November 2019. Retrieved 8 December 2020.
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