The currency union with Sint Maarten and the island's limited exposure to international financial markets will protect against strong depreciation pressures and exchange-rate volatility in 2022-23. We expect the government to retain the Netherlands Antilles guilder during our forecast period, but efforts to introduce a new currency-the Caribbean guilder-have been made, and we believe that it will be introduced in 2024 or later (in any case, beyond our forecast horizon). Sint Maarten and Curaçao formed a currency union in 2010 and had intended to adopt the new currency jointly, but Sint Maarten's preference for adopting the US dollar delayed the initiative. In September it was announced that both countries had confirmed their commitment to a new currency, owing to the risk of stock shortages of the Netherlands Antilles guilder and the need to introduce new counterfeit security features for banknotes and coins. We expect the union to remain intact until the new currency is introduced, with the Netherlands Antilles guilder pegged to the US dollar at Naf1.79:US$1.