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 of August 21, 2023, the MPC decided to reduce the reserve requirement rate to 24.5 percent as of September 1, 2023. Accordingly, commercial banks must hold a minimum balance at the CBA equal to 24.5 percent of their clients’ liquid deposits. The decision to reduce the reserve requirement rate to 24.5 percent was based primarily on the steady contraction in the estimated excess liquidity of the banking sector compared to December 2022, mostly due to increased credit, while official and international reserves, albeit incurring decreases, remained at an adequate level. 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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