"Caribbean guilder" not ready by 10-10-10

July 27, 2010 1:45 PM

Curaçao's General Affairs Commissioner Zita Jesus-Leito (PAR) has confirmed that the Caribbean Guilder, which is to become the currency of the new countries Curaçao and St. Maarten, will not be in circulation until six to nine months from now.

It has been known for some time that the new common currency will not be ready by October 10 when the Netherlands Antilles ceases to exist.

The Caribbean Guilder will be under supervision of the joint Central Bank of Curaçao and St. Maarten. The new bank will have a chairman, who will be chosen by both countries, while the two countries will also appoint the other six members of the Supervisory Board of Directors.

Jesus-Leito and her colleague in charge of finance, Mike Willem, held a conversation on St. Maarten with Commissioner William Marlin last week Thursday. The purpose of this conversation was to conclude further agreements on the interpretation of the joint Central Bank of the two future autonomous countries within the Dutch Kingdom.

According to Jesus-Leito, there is currently agreement on most details regarding an outline for the monetary union and a new Central Bank that requires further interpretation. The parties agreed that the Supervisory Board of Directors will consist of six members to be appointed by the two countries.

According to the commissioner, agreements were made also for a transitional arrangement until the introduction of the new currency. During this period, the new currency will be introduced gradually, whereby the current Antillean guilder will be taken out of circulation.

Jesus-Leito was very pleased with the conversation in St. Maarten. The experts will continue talks on the precise interpretation of the monetary system of the future autonomous countries.

During the presentation of the 2009 annual report on the Antillean economy, Antillean Central Bank president director, Emsley Tromp, said he still hadn't heard anything on the new currency and its denominations. Casually referring to the Central Bank advice in favour of "dollarization" which the political officeholders had not followed, Tromp said it could take 12 to 18 months before the two new countries switch to a new currency.

"First of all, we have to come up with a name for this currency and determine its denominations. From that moment, it will regard matters we have experience with, such as contacting the right authorities so that the banknotes and coins can be manufactured, and bringing this currency in circulation.

"During the transitional period, the Antillean guilder will be used along with this new monetary unit. Decisions need to be taken on this matter, as one has to consider the manufacturer's capacity, and let's not forget there's a shortage of the basic product for coins and banknotes - due to the crisis of 2008."

23 July 2010