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 April 25, 2023, the MPC decided to retain the reserve requirement rate at 25.5 percent as of May 1, 2023. Accordingly, commercial banks must hold a minimum balance at the CBA equal to 25.5 percent of their clients’ liquid deposits. The decision to maintain the reserve requirement rate unchanged at 25.5 percent was based primarily on the contraction in the estimated excess liquidity of the commercial banking sector as per the end of March 2023 compared to December 2022. The CBA continues to monitor the excess liquidity developments and stands ready to change the reserve requirement rate, if deemed necessary.

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