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 September 14, 2023, the MPC decided to reduce the reserve requirement rate by 1.0 percentage point to 23.5 percent as of October 1, 2023. Accordingly, commercial banks must hold a minimum balance at the CBA equal to 23.5 percent of their clients’ liquid deposits. The decision to reduce the reserve requirement rate was based primarily on the steady decline 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, continued at an adequate level. The CBA continues to monitor the excess liquidity developments and stands ready to adjust the reserve requirement rate, if deemed necessary.

Read the complete press releases in Papiamento, English or Dutch.