Country Report Curaçao 1st Quarter 2018

Outlook for 2018-19: Monetary policy

A weak economy and still-low inflationary pressure will enable the CBCS to keep monetary policy loose. However, monetary transmission mechanisms are weak, and policy rate decisions have only a limited effect on economic performance. Despite a decision in 2011 by the Staten to dissolve the CBCS and establish a central bank solely for Curaçao, reform of the currency union and the creation of an independent central bank will remain medium-term goals. On the banking side, the IMF has urged both Sint Maarten and Curaçao to strengthen financial supervision and transparency, as well as to share cross-border tax information, given the islands' status as regional financial centres. This will help to address reputational concerns stemming from high levels of fraud, tax evasion and money laundering.

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