WILLEMSTAD – While Curaçao’s financial system remains broadly stable, the International Monetary Fund (IMF) warns that communication gaps and limited transparency could undermine confidence if not addressed.
The IMF report notes that the financial sector in Curaçao and Sint Maarten is large relative to the economy, with assets exceeding 300 percent of GDP. The system is supported by strong capitalization and liquidity, particularly in the banking sector.
However, the report also points to lingering reputational challenges following the collapse of major financial institutions in recent years. These failures placed significant strain on public trust in the central bank and highlighted weaknesses in oversight and communication.
In response, the CBCS has increased its outreach efforts, including the publication of financial stability reports and greater engagement with stakeholders. The IMF acknowledges these improvements but stresses that more needs to be done.
One key issue is the limited understanding among stakeholders of the central bank’s policies. For example, a survey conducted as part of the review found that only a minority of respondents correctly identified maintaining the currency peg to the U.S. dollar as the primary objective of monetary policy.
The IMF also points to a lack of transparency in areas such as foreign exchange policy, risk management, and anti-money laundering supervision. In many cases, information is either not disclosed or presented in a way that is difficult for the public to interpret.
Looking ahead, the IMF emphasizes that improving communication will be critical, particularly as Curaçao prepares to further develop its macroprudential policy framework and strengthen financial oversight.
The report concludes that transparency is not just a governance issue, but a key pillar of financial stability—especially for small, open economies like Curaçao that are highly exposed to external shocks.