That the two respective governments reached agreements (see Monday newspaper) on the Central Bank of Curaçao and St. Maarten (CBCS) is a positive development. A row mainly over the appointment of a new chair for the Supervisory Board had put the immediate future of the shared financial sector supervisor somewhat in doubt.
Calls for an own central bank rather than the current shared one were made on both islands, particularly in local political circles. While there is nothing wrong with entertaining such, a conscious choice for a joint monetary authority was made during the dismantling of the former Netherlands Antilles per 10-10-10.
Moreover, the introduction of a new shared currency took place only recently with the Caribbean guilder, replacing the old Antillean version. This was done after duly studying the possibility of dollarisation, as implemented on Bonaire, St. Eustatius (so-called BES).
The latter would likely come back on the table should the two Dutch Caribbean countries opt to go their own ways in this respect. It could again mean years of preparations as well as significant cost, so any decision on this crucial matter should be based on rationale rather than emotions.
Stability is essential particularly in the financial-economic world. The present situation with a guilder pegged to the US dollar and CBCS provides that.
The reportedly unanimous nomination of candidates to fill key vacancies for a new president and two directors by the Supervisory Board is a hopeful sign. It indicates that the three members each representing Curaçao or St. Maarten all gave their support.
That shows the kind of maturity and wisdom expected regarding an institution of such magnitude and importance.
