At moments of global uncertainty, small economies are often tempted by big ideas. Calls for monetary independence, currency flexibility, or a break from the US dollar can sound appealing—especially when framed as sovereignty, self-determination, or “taking control.” But Curaçao’s economic reality demands something far less romantic and far more responsible: stability.
The Central Bank’s recent address on Curaçao’s monetary framework delivers an uncomfortable but necessary message. For an economy like ours—small, open, import-dependent, and overwhelmingly dollar-based—the fixed exchange rate is not a limitation. It is an anchor.
More than two-thirds of Curaçao’s economic transactions are conducted in US dollars. Tourism, fuel, food imports, shipping, insurance, and financial contracts all flow through the dollar system. In that context, abandoning the peg would not create independence; it would import volatility. Exchange-rate swings would immediately translate into higher prices at the supermarket, rising costs for businesses, and uncertainty for households already under pressure.
Some argue that a flexible currency would give Curaçao “policy tools” to fight inflation or stimulate growth. That argument misunderstands the nature of our economy. Inflation here is not homegrown—it is imported. Monetary easing would not lower food prices or fuel costs. It would only weaken the currency, raising the cost of living and eroding purchasing power, especially for those least able to absorb shocks.
The dollar peg has provided Curaçao with something rare in the Caribbean: five decades without devaluation. That record matters. It underpins confidence in the financial system, protects savings, and gives investors a predictable environment. Stability is not flashy, but it is the foundation upon which sustainable growth is built.
This does not mean Curaçao’s economy is without problems. Growth remains uneven, productivity is low, and too many households struggle to make ends meet. But these are not monetary failures. They are structural ones. The solutions lie in labor market reform, education, better governance, productivity gains, and a more diversified economy—not in currency experiments.
Monetary policy cannot compensate for political shortcuts or delayed reforms. Pretending otherwise only shifts responsibility away from where it belongs. A stable currency gives policymakers the space to act. A volatile one removes that space entirely.
Curaçao’s economic future will not be secured by symbolic gestures or abstract notions of independence. It will be secured by realism, discipline, and choices rooted in how the economy actually functions. In that sense, staying anchored to the dollar is not a sign of weakness—it is a recognition of what best serves the country.
For Curaçao, stability is not the enemy of progress. It is the precondition for it.
