Caribbean guilder

Caribbean guilder
Caribische gulden  (Dutch)
Denominations
Plural guilders
Symbol CMg,[1] CMƒ, or ƒ
Banknotes
 Freq. used 10, 20, 50, 100, 200 guilder[1]
Coins 1, 5, 10, 25, 50 cents;
1, 5 guilder[1]
Demographics
User(s) proposed in
 Curaçao
 Sint Maarten
Issuance
Central bank Central Bank of Curaçao and Sint Maarten
 Website www.centralbank.cw
Valuation
Pegged with U.S. dollar = ƒ1.79

The Caribbean guilder (Dutch: Caribische gulden) is the proposed currency of the Caribbean islands, and constituent countries of the Kingdom of the Netherlands, Curaçao and Sint Maarten, which formed after the dissolution of the Netherlands Antilles on October 10, 2010. As of January 2018, the Caribbean guilder has not been introduced.[2]

Since 2018 banknotes and coins, which are not in production pending decision on the currency, now require replacement[3] and there were only two years of Antilles guilder remaining and there was still a possibility that the islands could opt for the dollar or euro instead.[4]

Negotiations

The Netherlands Antillean guilder will continue to circulate and plans to implement the Caribbean guilder will not be finalized until the islands' Central Bank situation is resolved.[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 continue, the Caribbean guilder will 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 cites a major problem with the proposed union is the lack of any forum to discuss macroeconomic coordination (as there is for the East Caribbean Dollar).[9]

Organization

The launch of the currency was delayed until the islands' Central Bank situation is resolved. The currency is supposed to be issued by the Central Bank of Curaçao and Sint Maarten (the successor of the Bank of the Netherlands Antilles) with 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 2.5 guilder coin and the 25 guilder notes present in the Netherlands Antillean guilder series would not be issued, but would be replaced by 20-based denominations.[1]

References

  1. 1 2 3 4 5 "FAQ - Central Bank". Central Bank of Curaçao and Sint Maarten. Retrieved 24 February 2014.
  2. ↑ Currency (Curacao Tourist Board)
  3. ↑ Banknotes and coins should soon be replaced
  4. ↑ Only two years worth of Antillean guilders left Daily Herald 13 June 2018
  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. Retrieved 22 October 2010.
  7. ↑ "Onderzoek naar eigen Centrale Bank voor Curacao" (in Dutch). BearingPoint Caribbean. 1 April 2014. 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
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.