WILLEMSTAD - The Central Bank of Curaçao and Sint Maarten (CBCS) concluded the financial year 2022 positively with a profit of 1.3 million guilders. This is evident from the bank's recently published annual report. The profit is mainly the result of a clever gold transaction, explained Richard Doornbosch, president of the CBCS.
"This profit is due to a gold transaction where we converted part of the unrealized capital gain by selling gold and immediately repurchasing it, while retaining the same physical quantity of gold," says Doornbosch. "This offset the losses on our investments and the unrealized loss from market value changes, which were the result of rising interest rates in the international market."
This positive development was somewhat tempered by increasing costs. Doornbosch points to several factors: "We saw an increase in costs due to, among other things, the further implementation of our restructuring plan, rising travel costs after the lifting of COVID-19 restrictions, and investments in new software applications and cybersecurity."
Despite these challenges, Doornbosch emphasizes the bank's efforts to improve its investment returns. "Continual reassessment and improvement of our investment policy are essential. We also aim to reach agreement with the financial sectors on supervisory costs."
In light of new legislation, Curaçao and Sint Maarten introduced a Landsverordening normering topinkomens (National Ordinance Standardization Top Incomes) in 2022. Doornbosch says he cannot provide a full overview as long as there is no procedure to align the new law with the bank charter.
The CBCS is also focusing on sustainable strategic initiatives. "In March 2022, we launched our 'Strategic Plan CBCS 2025,' aimed at a digitized and sustainable CBCS. This plan will help us fulfill our mission to promote the stability and integrity of the monetary and financial system," explains Doornbosch.
Another key initiative in 2022 was the introduction of a new risk-based methodology for supervision and the modernization of the interbank payment system with the launch of an Instant Payment Service (IPS). "This is a significant step forward for our domestic markets and places us, along with Bonaire and Aruba, among the first islands in the Caribbean with such infrastructure," says Doornbosch.
In its pursuit of efficiency and cost control, the CBCS will continue to leverage technological developments. "The annual report and approval by the Supervisory Board and Beneficiaries demonstrate our commitment to a stable and integral financial system in Curaçao and Sint Maarten," concludes Doornbosch.