A future breakup of the monetary union between Curaçao and St. Maarten is not unthinkable, following recent statements by government officials from both Dutch Caribbean countries. However, the present arrangements, including a shared currency and central bank, were made as part of dismantling the former Netherlands Antilles per 10-10-10, with close involvement by the Kingdom Council of Minsters RMR.
In other words, The Hague might have something to say about removing what was seen as a safeguard for financial stability in the two new autonomous countries within the kingdom back then. At the very least explaining the benefits of such would probably be expected.
After all, the chief bone of contention right now is appointing a joint Supervisory Board chairperson for the Central Bank of Curaçao and St. Maarten (CBCS). Although the countries own approximately 80 and 20% of the bank based on their size, they nominate three board members each and the two Finance Ministers must put forward a joint chair approved by a minimum of five/sixth of the remaining board.
This has proven a problem. In various cases, the Joint Court of Justice for the Dutch Caribbean had to intervene by taking a decision to end related impasses, as regulated in CBCS’ statutes.
Finance Minister Marinka Gumbs says it was agreed that St. Maarten would provide the next candidate, which both her former and current Curaçao counterparts have meanwhile denied. It also turned out that while the last chairman Etienne Ys is from Curaçao, he was apparently proposed by St. Maarten under a deal made back then.
Curaçao Prime Minister Gilmar Pisas took it a step further by stating that allowing St. Maarten a joint chair in addition to three of the six board members would be “disproportionate” considering its economic contribution. However, that’s not what was stipulated back then.
Besides, St. Maarten generally produces more than 20% of CBCS’ foreign exchange earnings. The local government has indicated it is preparing for multiple scenarios and a dedicated task force will be established to assess the country’s monetary future, including the possibility of creating its own central bank and reconsidering its currency framework.
But CBCS was never meant to be used as political football. Board members are also to represent the interests of the entire monetary union, rather than only the country that nominated them, and do so in a business-like manner.
For those who missed it, a professional in Curaçao has just been named (see Wednesday newspaper) as president-director of Aruba’s Central Bank. Although this regards an executive rather than supervisory function, it can still serve as food for thought.
Relevant capabilities, knowledge and experience as well as strength of character should be among the main considerations, not so much where one is from.
