Growing signals that Curaçao is reconsidering its monetary union with Sint Maarten are putting renewed focus on the future of the countries’ shared financial framework, with experts outlining three possible scenarios: reform, a gradual separation, or a complete break.
The debate centers on the future of the Centrale Bank van Curaçao en Sint Maarten, which has served as a joint pillar of monetary cooperation since the constitutional changes of 2010. However, ongoing governance tensions have brought the arrangement under increasing pressure.
According to financial expert and former Audit Chamber auditor Luigi Faneyte, the issue is no longer whether change will occur, but what form it will take.
The first and most cautious option is to maintain the monetary union while implementing reforms. This could include adjusting governance structures within the central bank to better reflect Curaçao’s larger economic weight.
Such an approach would preserve monetary stability, maintain confidence in the Caribbean guilder, and avoid disruptions to the financial system. However, it would require political compromise, particularly from Sint Maarten, and could prove difficult to implement given existing tensions.
A second scenario involves a “soft separation,” where Curaçao establishes its own central bank while maintaining some level of monetary cooperation, for example through a shared or pegged currency. This would give Curaçao greater policy autonomy while allowing for a gradual transition.
However, analysts warn that this model could introduce inefficiencies, increase institutional costs, and create uncertainty for investors, as two parallel monetary systems would need to be coordinated.
The most far-reaching option is a complete dissolution of the monetary union. In that case, both countries would pursue independent monetary policies, potentially introducing separate currencies or moving toward greater dollarization.
While this would offer full policy control, it carries significant risks, including financial instability, loss of confidence in the currency, capital outflows, higher interest rates, and economic slowdown. Sint Maarten, in particular, could face heightened vulnerability due to its smaller economic scale.
From an economic standpoint, Faneyte argues that reforming the existing monetary union remains the most rational and sustainable path. He notes that the core issue lies not in the existence of the union itself, but in its governance structure—something that can be addressed through institutional changes.
A full break, he warns, would likely be driven more by political escalation than economic logic and could have long-lasting negative effects on financial stability and investor confidence.
The discussion highlights a broader tension between political considerations and economic realities, as both Curaçao and Sint Maarten weigh their options.
Observers note that the current debate ultimately comes down to a fundamental choice: reform what is not working, without dismantling what continues to provide stability.
drs. Luigi A. Faneyte MSc. CFE CICA CCS
Politician | Economist | Financial Expert | Consultant | Auditor | Analyst | Researcher | Lecturer
(former Auditor of the Court of Audit)
Policy Advisor for the PAR faction in the Curaçao Parliament