WILLEMSTAD – The Centrale Bank van Curaçao en Sint Maarten (CBCS) has reaffirmed that maintaining the peg of the Caribbean guilder to the U.S. dollar remains appropriate for the local economy .
According to the Economic Bulletin, more than 65% of international transactions in the monetary union are conducted in U.S. dollars, and the United States remains the most important trading partner.
While fluctuations in the dollar can impact inflation and competitiveness—especially in relation to the euro—the central bank sees no reason to reconsider the currency peg.
Instead, policymakers are advised to monitor exchange-rate effects closely while maintaining sufficient reserves to ensure financial stability.