In line with the Monetary Policy Committee’s (MPC) task to evaluate, determine, and provide transparency on the monetary policy actions of the Central Bank of Aruba (CBA), the CBA communicates the following. During its meeting on November 22, 2022, the MPC decided to increase the reserve requirement from 24.0 percent to 25.0 percent as of December 1, 2022. Accordingly, commercial banks must hold a minimum balance at the CBA equal to 25.0 percent of their clients’ short-term deposits. The decision to expand the reserve requirement to 25.0 percent was based mainly on the diminished pace of decline in the commercial banks’ excess liquidity, as well as the still ample level of excess liquidity at the commercial banks, which persists well above the pre-pandemic and precautionary levels.

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