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 June 17, 2022, the MPC decided to further raise the reserve requirement rate, i.e., from 22.0 percent to 24.0 percent as of July 1, 2022. Accordingly, commercial banks must hold a minimum balance at the CBA that is equal to 24.0 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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