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Exchange Rates

Frequently Asked Questions

The official exchange rate is the rate published daily on working days by the CBCS on its website (https://www.centralbank.cw/). These rates must be applied by the foreign exchange banks for transactions of their resident customers with nonresidents for amounts up to NAf 25,000. For higher amounts, the foreign exchange banks may apply more favorable rates for their customers.

The authority of the CBCS to determine the official exchange rates is vested in the Central Bank Statute, article 9, paragraph 8 and the Regulation Exchange Rate Caribbean guilder (Netherlands Antillean guilder), article 2. For foreign exchange transactions between residents, the foreign exchange banks must apply different rates according to the type of transaction.

The License Fee Matrix provides an overview of the exchange rates to be applied (https://cdn.centralbank.cw/media/legislation_guidelines/20191107_license_fee_matrix.pdf).

There is no regulation of exchange rates in the Central Bank Statute to be applied by businesses. In this case, fair business practice should be applied. Some examples for the NAf/US dollar exchange rate are:

  1. The business maintains both NAf and US dollar accounts with its local bank. In this case, fair business practice is applying the conversion rate of US dollar 1=NAf 1.79.
  2. The business maintains only a US dollar account with its local bank. In this case, fair business practice is applying a rate of US dollar 1=NAf 1.80 for customer payments (cash and noncash).
  3. The business maintains only a NAf account with its local bank. In this case, fair business practice is applying a rate of US dollar 1=NAf 1.77 for cash payments and US dollar 1=NAf 1.78 for noncash payments (bank transfers or debit cards).

Moreover, Article 126 of Book 6 of the Civil Codes of Curacao and Sint Maarten states “For the purpose of this Section the rate of exchange shall be the rate against which the creditor immediately can provide himself the money, taking into account what may result from law, common practice and the content and intention of the obligation”. This implies that for example in the case of a store purchase, the creditor should apply the exchange rate at which he/she can exchange the currency from US dollar to NAf and/or the other way around at for example a commercial bank.

Exchange rates may differ for cash and noncash transactions. Please refer to the official exchange rates published on the CBCS website (https://www.centralbank.cw/) and the License Fee Matrix (https://cdn.centralbank.cw/media/legislation_guidelines/20191107_license_fee_matrix.pdf). Note that these rates must be applied by the foreign exchange banks. Businesses should apply rates according to fair business practices:

  1. The business maintains both NAf and US dollar accounts with its local bank. In this case, fair business practice is applying the conversion rate of US dollar 1=NAf 1.79.
  2. The business maintains only a US dollar account with its local bank. In this case, fair business practice is applying a rate of US dollar 1=NAf 1.80 for customer payments (cash and noncash).
  3. The business maintains only a NAf account with its local bank. In this case, fair business practice is applying a rate of US dollar 1=NAf 1.77 for cash payments and US dollar 1=NAf 1.78 for noncash payments (bank transfers or debit cards).

If the rate that a business charges is less favorable than the rate prescribed by the CBCS for the foreign exchange banks, a customer could change currency at a foreign exchange bank and pay the business in the currency that results in the most favorable price. Note that for this consideration also the bank’s exchange fees should be taken into account.

Regulation for exchange rates to be applied by businesses should be introduced by the government. More specifically, Ministerie van Economische Ontwikkeling (MEO) in Curaçao and the Ministry of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) in Sint Maarten.

Last updated: 10.07.2024 17:07