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 January 13, 2023, the MPC decided to maintain the reserve requirement rate at 25.5 percent as of February 1, 2023. Accordingly, commercial banks must hold a minimum balance at the CBA equal to 25.5 percent of their clients’ short-term deposits. The decision to maintain the reserve requirement rate at 25.5 percent was based on the steady decrease in the excess liquidity held at commercial banks, albeit at a lower pace, since July 2022. The CBA will continue to monitor the developments of excess liquidity in the coming months and stands ready to again change the reserve requirement rate, if deemed necessary.

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