WILLEMSTAD – Calls for monetary independence often appeal to national pride, but the Central Bank cautions that sovereignty without scale can be costly.
In theory, a floating currency offers flexibility. In practice, for small, import-dependent economies, it often produces volatility rather than resilience. Exchange-rate swings quickly translate into higher prices, unstable expectations, and weaker confidence.
The Bank emphasized that Curaçao’s dollar peg is not ideological, but pragmatic. It reflects the island’s trade patterns, tourism model, and financial integration. Only a fundamental shift in those structures — such as a pivot away from dollar-based tourism and trade — would justify reconsidering the regime.
Until then, the Bank’s conclusion is clear: stability, credibility, and predictability outweigh the allure of monetary experimentation.
