Curaçao and Sint Maarten: New currency area

[Figleaf]

Dutch news sources report that the islands of Curaçao and Sint Maarten (the French part of the island is called Saint Martin) will create a common central bank and issue a new denomination. The name of the new denomination is not yet known. An agreement to this effect was concluded on 26th November 2008. The Netherlands are a party to the agreement, as it will take over 1.5 million euro of debt of the former Netherlands Antilles.

In 2010 the two islands will become autonomous. The island of Aruba already has autonomy. The remaining islands of the former Netherlands Antilles, Bonaire, Saba and Sint Eustatius, will get the status of Dutch cities.

Peter

[chrisild]

Wasn't there a plan to "dissolve" the Netherlands Antilles by the end of this year? Ah well, 2010 then ...

Christian

[Figleaf]

The agreement formalizing the above will be signed this December. This is probably what you are referring to.

Peter

[chrisild]

Yes and no. We had a discussion about this new status for the Netherlands Antilles in another forum, with the emphasis on the question whether the euro will be introduced in the remaining (BES) islands once they become parts of the Netherlands. Apparently the original plan was that the Neth. Antilles cease to exist on 15 December 2008. Just searched the web a little, and it seems that date was postponed earlier this year ...

Anyway, I hope that (whichever currency will ultimately be picked) they continue to make those square coins.

Christian

[chrisild]

Seems the future of Curaçao is still somewhat uncertain: The Round Table agreement (mid-December 2008) will be subject to a referendum in May. http://www.referendummei15.com/nederlands/vragen_14_referendum2009.htm

As far as I can tell, some parties in Curaçao would like to open the "package" (which was the result of the negotiations) again, and particularly split the political and economic aspects of the future status. Anyway, if you vote Yes, you agree with the results of the negotiations - if you vote No, you don't. In case the "No" camp gets a majority, further talks would have to follow ...

Christian

[chrisild]

In less than two months the Netherlands Antilles (as a country within the Kingdom of the Netherlands) will be history. As you may know, Curaçao and Sint Maarten will then become separate autonomous parts of the kingdom, while the "BES Islands" (Bonaire, Saba, and Sint Eustatius) become parts of the Netherlands, with a "special municipality" status. The date is easy to keep in mind for both Europeans and Americans: 10-10-10.

Curaçao and Sint Maarten will then have a common central bank, and eventually a new currency too. This future currency will be called Caribbean Guilder and at some point replace the current Antillean guilder. However, that may take a while: In late July, Curaçao's government said that the Caribbean Guilder "will not be in circulation until six to nine months from now." The president of the central bank even said that "it could take 12 to 18 months before the two new countries switch to a new currency."

And an op-ed article in the same issue of that newspaper suggests that the two might as well keep the Antillean guilder. The central bank seems to be in favor of full dollarization anyway ...

Christian

[chrisild]

The Netherlands Antilles are now gone. Well, the islands are still there but there is no such political entity any more.
http://www.nrc.nl/binnenland/article2629887.ece/Nederlandse_Antillen_opgeheven

Christian

[chrisild]

Bonaire, St. Eustatius and Saba now use the US dollar which has become legal tender there on 1 January. Curaçao and Sint-Maarten currently use the Netherlands Antilles Gulden, and will continue to do so until some time next year. In 2012 they plan to adopt the new "Caribbean Gulden", pegged to the US dollar like the current gulden. http://www.currency-iso.org/dl_currency_iso_amendment_150.pdf

Christian

[Abhay]

The Netherlands Antilles and its money are both defunct.

On Oct. 10, 2010, the Associated Kingdom of the Netherlands Antilles was officially dissolved, with new monetary systems coming into use beginning Jan. 1, 2011.


Curacao and Sint Maarten were to commence using 10-, 25-, 50-, and 100-gulden bank notes issued by the Centrale Bank van Curacao en Sint Maarten as the successor central bank to the Bank van de Nederlandse Antillen.

Bonaire, Saba, and Sint Eustatius, all being formerly part of the Netherlands Antilles, will begin using US dollars. This follows such other nations as Ecuador and Panama who also use US dollars rather than their own domestic currency.

The Netherlands Antilles circulating coinage consisted of denominations of 1, 5, 10, and 25 cents, and 1 and 5 gulden. Bank notes were issued in denominations of 10, 25, 50, and 100 gulden. Nothing was confirmed at the time this article was being written regarding what coins will be used in the future, or if the Netherlands Antilles coins will continue to be honored or demonetized.

The Netherlands Antilles received autonomy from the Netherlands on Dec.15, 1954. This included receiving equality with both Surinam and the Netherlands. It became a fourth completely separate entity within the Dutch realm on Jan. 1, 1986, which led to total independence.

Coins carrying the name Nederlandse Antillen were first issued in 1952. Nickel replaced silver in circulating coinage in 1970. The 2½ guldiner ceased production at that time, then was resumed in 1978.

The following year 1- and 2½-cent coins composed of aluminum were introduced. The 5-cent denomination became aluminum in 1989, the same year nickel-bonded steel 10-, 25-, and 50-cents coins were introduced. This was followed by an aureate-steel 5-guilder coin being introduced for circulation in 1998.

Source: Numismaster


Abhay

[chrisild]

The Netherlands Antilles and its money are both defunct.

Wrong. The Netherlands Antilles do not exist any more as a political entity (see the other topics about this), but the money is still around:

Curacao and Sint Maarten were to commence using 10-, 25-, 50-, and 100-gulden bank notes issued by the Centrale Bank van Curacao en Sint Maarten as the successor central bank to the Bank van de Nederlandse Antillen.

They will continue to use the Netherlands Antilles gulden for at least another year. The Caribbean Gulden will replace it some time in 2012 ...

Christian

[<k>]

More on the Caribbean guilder, which is to be introduced in 2012.

The currency will be phased in over three months. The 2.5 guilder coin and the 25 guilder notes present in the Netherlands Antillean guilder series (as well as in the other guilder sets in the Kingdom of the Netherlands) will no longer be produced and will be replaced by 20-based denominations.

Source: Wikipedia.

http://en.wikipedia.org/wiki/Caribbean_guilder

[<k>]

Central Bank of Curacao and Sint Maarten could split

14th December 2012

Source: CentralBanking.com

The two Caribbean islands are contemplating dividing their shared central bank; Saint Martin minister of finance keen to avoid new currency.

The governments of Curacao and Saint Martin are considering splitting the two islands' shared central bank, the Central Bank of Curacao and Sint Maarten. Saint Martin's minister of finance, Roland Tuitt, told CentralBanking.com that Curacao's new government – currently being formed – has committed to discussing a central bank split in its governing accord, though Saint Martin has yet to be formally approached.

Both islands – formerly a part of the Netherlands Antilles – gained autonomy from the Kingdom of the Netherlands in October 2010. One central bank governs both countries, with headquarters in Curacao and a smaller branch in Saint Martin.

Tuitt said Saint Martin's operations are being expanded to ensure the country is prepared for the split, should it occur. The branch is hiring more staff, improving its infrastructure and progressing to a "reasonably operational mini-central bank".

"If something like that [the split] happens, we will have a central bank with experienced people and a structure that can be used to move forward," he said.

A central bank spokesperson said the matter was currently under consideration between the governments, and the central bank would not be party to discussions. The spokesperson was unable to provide a timescale for the issue, and unwilling to comment on how it affected the central bank's operations.

Roland Tuitt said the Kingdom of the Netherlands would also have input in the central bank's future and only time would tell which stakeholder had the final say on matters. Tuitt also emphasised the range of possibilities available to the islands, including the possibility of dollarisation, though this, he said, was unsuccessfully broached by Curacao's previous government. Were the split to occur, Tuitt suggested Saint Martin could seek to join with another partner with a similar or only slightly different currency. Every option should be evaluated, he stressed.

Both islands currently use the Netherlands Antillean guilder, though this is due to be replaced with a new currency, the Caribbean guilder. The switch was initially supposed to occur in 2012, but was postponed without explanation.

When asked whether the debate over the central bank's future could lead to a further delay, Tuitt responded: "I hope so!" Changing a currency costs a lot of money, he explained. The current system is proven to work and, even if the currency is a little outdated, he sees no incentive to change. "You put people who died on your currency bills. If we keep the Netherlands Antilleans on our bills, I don't see the big hoop-la," he said.

Tensions between the two countries rose after a recent meeting between the central bank's board of supervisory directors and the two countries' minister of finance was boycotted by the three members from Curacao, led by board chairman Renny Maduro. Local press reported that Maduro and the other members were dissatisfied with a host of decisions taken by the central bank, and its president Emsley Tromp.

Tuitt condemned the members' actions, and said the reason for their absence was not a strong one. The board was still able to make decisions – as four of its seven members remained – but Tuitt does not want to see the split sustained.

"I'd like to see the board members function. They are getting paid to function," he said. "Once the new (Curacao) government takes shape and comes on board we will have to come to a solution because this cannot continue like that."

Tuitt expects the governments to meet next in early 2013. Curacao's prime minister, Stanley Betrian, was unavailable for comment.

[Jostein]

Its seems that (finally!) we will see the new coins for the next year:

New Coins In 2014

WILLEMSTAD – The 2014 guilders will get the face of King Willem-Alexander. All portraits of former Queen Beatrix are gone from several official places in Willemstad, such as parliament, the court of justice and Fort Amsterdam. It will take a little more time with the coin. There is a 5 guilder coin in circulation with the image of two heads of state and the flag of Sint Maarten and Curaçao. This coin was issued for collectors.

Issuing coins is the exclusive right of the Central Bank of Curacao and Sint Maarten. The face of Queen Beatrix will fade away from people's wallets and the currency will remain valid for another 30 years as payment method.

http://www.curacaochronicle.com/local/new-coins-in-2014/

Best,

jostein

[<k>]

Except that they are for the Netherlands Antilles, and this country no longer exists. We still await the Caribbean guilder.

[Ukrainii Pyat]

Kind of like USSR notes dated 1992 - nobody knew what to call the place and you couldn't exactly put "The Former Union of Soviet Socialist Republics on paper money so you just kept things going like nothing changed.