The currency union with Sint Maarten and the island's limited exposure to international financial markets will protect against strong depreciative pressures and exchange-rate volatility in 2022-23. We expect the government to retain the Netherlands Antilles guilder, as efforts to introduce a new currency-the Caribbean guilder-have stalled. Sint Maarten and Curaçao formed a currency union in 2010 and had intended to adopt the new currency jointly, but Sint Maarten has a preference for adopting the US dollar, which Curaçao opposes. We expect the union to remain intact throughout 2022-23 at least, with the Netherlands Antilles guilder pegged to the US dollar at Naf1.79:US$1.