CBCS Raises Pledging Rate to 4.50% as Foreign Reserves Expected to Decline

On September 17, 2026, the Centrale Bank van Curaçao en Sint Maarten increased its pledging rate to 4.50% while keeping the reserve requirement unchanged at 18.50%.

The decision was made against the backdrop of an expected decline in the monetary union's foreign exchange reserves, continued uncertainty around international trade policies, and ongoing geopolitical tensions. It also followed the U.S. Federal Reserve's September decision to raise its policy rate by 25 basis points.

Gross official reserves increased by Cg 468.1 million through August 31, 2026, but are projected to decline by approximately Cg 332 million over the full year. The CBCS attributed the reversal mainly to withdrawals by the Dutch State from its account at the central bank and lower net capital transfers.

As a result, import coverage is expected to fall from 4.7 months at the end of 2025 to 4.3 months in December 2026, while remaining above the 3-month benchmark.

The CBCS also adjusted its Certificates of Deposit program to reduce the cost of absorbing excess liquidity, improve liquidity management, and strengthen monetary policy transmission. Those changes take effect at the beginning of October 2026, with further details to be provided in a forthcoming monetary circular.