WILLEMSTAD/PHILIPSBURG:--- The current exchange rate arrangement of the monetary union of Curaçao and Sint Maarten has been a regular subject of debate over the years. The country packages of reforms (Landspakketten) for Curaçao and Sint Maarten brought the topic back to the fore. The packages included the requirement that a study be done by an independent party on the societal costs of their own currency versus dollarization. This study is included in the Staff Report of the IMF’s 2021 Article IV Consultation of Curaçao and Sint Maarten. Considering the current interest in the topic, the Centrale Bank van Curaçao en Sint Maarten (CBCS) has published a position paper that provides an in-depth analysis on the benefits and costs associated with adopting the United States (U.S.) dollar as official currency, i.e., dollarization. Particularly in Sint Maarten, the issue of dollarization as an alternative to the current arrangement is frequently mentioned because the U.S. dollar widely circulates and is de facto accepted as a means of payment for goods and services.
https://www.centralbank.cw/publications/notes-and-advices/advices.
Comparison benefits and costs of dollarization vis-à-vis the current peg.
Source: Souliga Newsday https://www.soualiganewsday.com/index.php?option=com_k2&view=item&id=39227:parliamentary-delegation-led-by-marlin-off-to-ipko&Itemid=450
