WILLEMSTAD, PHILIPSBURG – The planned withdrawal of funds held by the Dutch State at the Central Bank of Curaçao and Sint Maarten (CBCS) will reduce the monetary union’s gross official reserves, although import coverage is expected to remain above the critical three-month benchmark.
The CBCS highlighted the development in its September 2026 Economic Bulletin, warning that the resilience currently enjoyed by Curaçao and Sint Maarten cannot be taken for granted.
For several years, principal and interest payments made by the governments of Curaçao and Sint Maarten to the Netherlands accumulated in accounts held by the Dutch State at the CBCS. Because those funds remained at the Central Bank instead of being withdrawn, they contributed to the monetary union’s gross official reserves and its import coverage.
The Dutch State now plans to repatriate those funds in phases. As the money leaves the CBCS, the external buffer available to the monetary union to absorb future economic shocks will decline.
CBCS President Ference Lamp said the development reinforces the need for policies that limit the current account deficit, strengthen government finances and improve the ability of Curaçao and Sint Maarten to generate foreign exchange.
The Central Bank stressed that the expected decline does not mean import coverage will fall below internationally important levels. It projects coverage to remain above the benchmark of three months.
Nevertheless, the CBCS considers adequate foreign exchange reserves particularly important for Curaçao and Sint Maarten because both are small, highly open economies and their currency is maintained at a fixed exchange rate.
According to the Bank, confidence in that exchange-rate system depends on adequate reserves, effective monitoring of capital movements and regulations that maintain an appropriate balance between economic openness and financial discipline.
Lamp pointed to foreign-exchange reforms introduced in 2024, including a higher threshold for foreign-exchange licenses and greater use of risk-based supervision, as evidence that liberalization can be combined with effective oversight.
The CBCS said maintaining external stability will require more than protecting existing reserves. Curaçao and Sint Maarten will also need to strengthen their ability to earn foreign currency and reduce vulnerabilities that could place pressure on their external position when another economic shock occurs.