By increasing its limit for walk-in exchanges from Antillean to the new Caribbean guilders (see Wednesday newspaper) the Central Bank of Curaçao and St. Maarten (CBCS) proved it listens to the public and their elected representatives. When the former maximum of NAf. 2,500 was announced, many argued this seemed far too low.
Keep in mind that it regards strictly cash transactions, because any NAf. amount on local bank accounts was automatically converted to Cg. Some might also consider an eight-fold hike to NAf. 20,000 quite drastic.
However, CBCS’ research has shown 17% the Dutch side’s population lacked access to regular banking services. They simply use banknotes and in certain cases built up sizeable savings that way.
The already-existing problem was probably worsened by de-risking policies of US correspondent banks and restrictive related requirements. It is being addressed with a new law giving residents the right to basic payment accounts at the monetary union’s commercial banks.
In the meantime, people should indeed be able to freely convert their “stash” to Cg. After all, the NAf. will cease being legal tender from July 1, although it can still be exchanged at banks until March 31 next year and at CBCS for another 29 years.
Under present circumstances, raising this ceiling was simply the right thing to do. A main priority should remain financial in- rather than exclusion.
