Central Bank of Curacao & St. Maarten (CBCS)
The central Bank’s most important objectives are to maintain the external stability of the Netherlands Antillean guilder (NAf.) as well as to promote the efficient functioning of the financial system in the Countries of Curaçao and St. Maarten. To realize these objectives, the Bank, as supervisory authority, has frequently recurred to credit control measures and/or to changing the discount rate. The functions of the Bank, explicitly summed up in the Bank Charter, are;
- The Central Bank is the only institution entitled by law to issue paper money in the Countries Curaçao and St. Maarten. The Bank is charged with the circulation of coins as well.
- The Central Bank supervises banking and other credit institutions to primarily promote the stability, integrity, efficiency, safety, and soundness of the financial sectors of the countries Curaçao and Sint Maarten in general and to safeguard the interest of the depositors and other creditors of the banking and other credit institutions in particular.
- The Central Bank manages the foreign exchange reserves of the Netherlands Antilles, which includes regulating of the transfer of payments between residents and nonresidents of the countries Curaçao and St. Maarten.
- The Central Bank acts as the government’s treasurer by receiving and making payments from and to the public through the tax collector’s accounts at the Central Bank.
To strengthen the Central Bank’s independent position vis-à-vis the government, the Bank Charter limits the monetary financing of budget deficits to 10% of the central government’s revenues in the previous year. This limitation must be seen in the context of an overdraft facility to meet liquidity deficits of the public sector that result from seasonal variations in government revenues.
What is the Fair-Trade Authority Curacao?
- The Fair-Trade Authority Curacao (FTAC) is a government supported institution that functions as the independent competition authority on the island. The FTAC protects free and undistorted competition in the market. This means that competition between companies is not hindered, restricted or distorted and that newcomers can enter the market without unnecessary obstacles.
- Why is the FTAC required? In a competitive market, companies should do their utmost to meet the wishes of consumers (consumer is king). This leads to lower prices, more choice, higher quality and new innovative products and services for consumers. As a result, consumers therefore benefit. On the other hand, companies also benefit from the new competition rules. Under the National Ordinance on competition [in Dutch: Landsverordening inzake concurrentie], the FTAC has been set up to monitor and, if necessary, enforce the rules for free and undistorted competition. The new rules of the National Ordinance on Competition will apply as of 1 September 2017. The FTAC will take action against companies that hinder, restrict or distort competition.