WILLEMSTAD – The monetary union's official reserves are expected to decline by approximately XCG 332 million in 2026, despite having risen strongly during the first eight months of the year, according to the Centrale Bank van Curaçao en Sint Maarten (CBCS).
Gross official reserves increased by XCG 468.1 million through August 31.
The increase was driven primarily by commercial banks selling foreign currency to the CBCS, higher U.S. dollar deposits held by commercial banks at the Central Bank and transfers from abroad involving pension funds, the World Bank and the Dutch Ministry of Finance.
But the CBCS expects that direction to reverse substantially during the remainder of 2026.
Official reserves are projected to fall by approximately XCG 332 million for the full year, primarily because the Dutch State plans to withdraw funds held in its account at the CBCS and because of lower net capital transfers.
The CBCS explains that the Dutch withdrawal involves the repatriation of funds accumulated in its account, primarily from interest and principal payments made by the governments of Curaçao and Sint Maarten to the Netherlands.
The effect will also be visible in the monetary union's import coverage.
Import coverage stood at 5.2 months in August after increasing from 4.7 months in December 2025. The CBCS expects it to decline to 4.3 months by December 2026 as reserves fall and imports increase.
Despite that decline, the level would remain above the Central Bank's prudential benchmark of three months.
For 2026 as a whole, average import coverage is projected at 4.9 months.
The distinction between the strong reserve position during the first eight months and the projected full-year decline is important.
The CBCS is not forecasting that reserves will fall below its safety benchmark. It is, however, expecting a substantial reversal during the final months of 2026, driven largely by financial flows involving the Dutch State.