In line with the Monetary Policy Committee’s (MPC) task to evaluate, determine and provide transparency on the monetary policy of the Central Bank of Aruba (CBA), the CBA communicates the following. During its meeting of May 24, 2022, the MPC decided to raise the reserve requirement rate from 20.0 percent to 22.0 percent as of June 1st, 2022. Accordingly, commercial banks must hold a minimum balance at the CBA that is equal to 22.0 percent of their clients’ short-term deposits. The decision to raise the reserve requirement was primarily based on the persistent elevated level of excess liquidity at the commercial banks, as well as the continued rise in inflationary pressures.

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