PHILIPSBURG/WILLEMSTAD--The number of foreign exchange licenses issued by the Central Bank of Curaçao and St. Maarten in 2014 dropped by 92 (11 per cent) to 776. This drop can be attributed primarily to fewer foreign exchange exemptions granted to international financial and business companies (86) and for lending abroad (33), cited the Bank's Annual Report 2014.
In line with the fewer licenses issued in 2014, the total transaction value related to the granted licenses decreased by NAf. 331.2 million (54 per cent) to NAf. 277.7 million.
All categories showed a decline in the value of licenses granted, except for the category "Other."
The largest declines occurred in the categories "Portfolio investment abroad" (NAf.142.0 million), "Transactions related to participations in local companies" (NAf.99.2 million) and "Transfer to own account abroad" (NAf.44.0 million).
The decline in the value of capital transactions that require a license can be attributed to, among other things, the recession in Curaçao reflected by a drop in private investments. In addition, lower international interest rates may be one of the factors that contributed to the decline in portfolio investment abroad.
Starting January 1, 1996, a fee was introduced by the Central Bank for the license to operate as a foreign exchange bank. This license fee is assessed on the international transactions of foreign exchange banks and replaced the foreign exchange tax in force through December 1995.
The amount of license fees collected in Curaçao dropped by NAf.2.2 million (4.3 per cent) to NAf. 50.0 million in 2014 compared to 2013.
The amount of licence fees collected in St. Maarten decreased also in 2014 by NAf.0.5 million (2.0%) to NAf.24.8 million.
The license fee is calculated on the basis of the payments made by residents to non-residents, with the exception of the re-investment of funds abroad, the re-exports of the free-zone companies and payments by the government.
The Bank assesses and collects the license fee in Curaçao and St. Maarten and the proceeds are remitted to the government of each country.
The Central Bank has NAf. 902.4 million in gold assets on its balance sheet as of December 31, 2014. The gold assets are down from NAf. 904.1 million in 2013.
Bank notes in circulation in 2014 totalled NAf.399,848,436 according to the annual report. Notes in circulation last year was increased from NAf.392,383,371 in 2013.
