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 October 24, 2023, the MPC decided to reduce the reserve requirement rate by 1.0 percentage point to 22.5 percent as of November 1, 2023. Accordingly, commercial banks must hold a minimum balance at the CBA equal to 22.5 percent of their clients’ liquid deposits. The decision to reduce the reserve requirement rate was based primarily on the official and international reserves remaining at an adequate level, despite incurring a decrease end- September 2023 when compared to end-2022. Furthermore, official and international reserves are foreseen to stay adequate and increase during the remainder of 2023. Additionally, aggregated excess liquidity within the commercial banking sector declined in September 2023 compared to December 2022, mostly due to increased credit. The CBA continues to monitor reserves and the excess liquidity developments, and stands ready to adjust the reserve requirement rate, if deemed necessary. 

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