WILLEMSTAD – Commercial banks in the Curaçao-Sint Maarten monetary union saw their liquidity increase by XCG 133.5 million during the first eight months of 2026, an increase of 25.9 percent compared with the end of last year.
The Centrale Bank van Curaçao en Sint Maarten (CBCS) says the increase was driven primarily by commercial banks' net sales of foreign exchange to the Central Bank and higher deposits held by commercial banks at the CBCS.
Transfers by the government of Sint Maarten from its CBCS account to accounts at commercial banks also contributed to the increase.
The rise was partly offset by a higher amount held under the reserve requirement, purchases of certificates of deposit and transfers by the Curaçao government and pension funds from commercial banks to the CBCS.
The figures show that commercial banks have substantial liquidity available even as the CBCS continues trying to manage how much money remains in the banking system.
One of the Central Bank's instruments for absorbing excess liquidity is its certificate of deposit program.
The outstanding amount in certificates of deposit increased by XCG 114.1 million through August 31, after already increasing by XCG 261.4 million in 2025.
By the end of August, outstanding certificates of deposit totaled XCG 653.1 million.
Two-week certificates represented by far the largest portion, at XCG 514 million. Three-month certificates denominated in Caribbean guilders accounted for XCG 75 million, while U.S. dollar-denominated three-month certificates represented USD 30 million, equivalent to approximately XCG 53.7 million. Twelve-month certificates totaled XCG 10.4 million.
The CBCS has been using its monetary policy instruments partly to encourage commercial banks to keep more funds within the monetary union rather than placing them abroad.
The development is significant because bank liquidity can influence lending conditions and the availability of financing for households and businesses.
In Curaçao, private-sector lending increased by 1.0 percent through April 2026. Mortgage lending increased 3.8 percent and consumer loans 0.4 percent, while business loans declined by 2.1 percent.
The combination means Curaçao's banking system has become more liquid, but that does not automatically mean the additional funds are being converted into greater lending to businesses.