Central Bank of Aruba
Encyclopedia
The Central Bank of Aruba is a central bank
in Aruba
responsible for implementation of monetary policy of the Aruban florin
.
. Prior to this period, Aruba formed part of the Netherlands Antilles
under jurisdiction of the Bank of the Netherlands Antilles
.
The Bank is a legal entity in itself (sui generis) with an autonomous position within Aruba's public sector. With the inception of the Bank, the Aruban florin was brought into circulation at the same rate as the Netherlands Antillean guilder, pegged to the U.S. dollar at a rate of Afl. 1.79 (= 1 NAf.) = US$ 1.00. This exchange rate has remained unchanged since then.
The principle tasks of the Bank are to maintain the internal and external value of the florin and to promote the soundness and integrity of the financial system.
Conduct monetary policy;
Supervise the financial system;
Issue bank notes;
Issue coins on behalf of the government;
Act as the banker for the government;
Be the central foreign exchange bank and, as such, to regulate the flow of payments to and from other countries; and to advise the Minister of Finance on financial matters.
Formulating and implementing monetary policy and related measures through, among other things, regulating bank credit and liquidity;
Monitoring economic and financial developments.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
in Aruba
Aruba
Aruba is a 33 km-long island of the Lesser Antilles in the southern Caribbean Sea, located 27 km north of the coast of Venezuela and 130 km east of Guajira Peninsula...
responsible for implementation of monetary policy of the Aruban florin
Aruban florin
The florin is the currency of Aruba. It is subdivided into 100 cents. The florin was introduced in 1986, replacing the Netherlands Antillean guilder at par.-History:...
.
History
The Centrale Bank van Aruba (the Bank) started its operations on January 1, 1986, when Aruba obtained its status as an autonomous country within the Kingdom of the NetherlandsKingdom of the Netherlands
The Kingdom of the Netherlands is a sovereign state and constitutional monarchy with territory in Western Europe and in the Caribbean. The four parts of the Kingdom—Aruba, Curaçao, the Netherlands, and Sint Maarten—are referred to as "countries", and participate on a basis of equality...
. Prior to this period, Aruba formed part of the Netherlands Antilles
Netherlands Antilles
The Netherlands Antilles , also referred to informally as the Dutch Antilles, was an autonomous Caribbean country within the Kingdom of the Netherlands, consisting of two groups of islands in the Lesser Antilles: Aruba, Bonaire and Curaçao , in Leeward Antilles just off the Venezuelan coast; and Sint...
under jurisdiction of the Bank of the Netherlands Antilles
Bank of the Netherlands Antilles
The Central Bank of Curaçao and Sint Maarten is the central bank of the former Netherlands Antilles. It is responsible for issuing the Netherlands Antillean guilder....
.
The Bank is a legal entity in itself (sui generis) with an autonomous position within Aruba's public sector. With the inception of the Bank, the Aruban florin was brought into circulation at the same rate as the Netherlands Antillean guilder, pegged to the U.S. dollar at a rate of Afl. 1.79 (= 1 NAf.) = US$ 1.00. This exchange rate has remained unchanged since then.
The principle tasks of the Bank are to maintain the internal and external value of the florin and to promote the soundness and integrity of the financial system.
The principal tasks of the Bank
The principal tasks of the Bank, as stipulated in the Central Bank Ordinance (A.B. 1991 No. GT 32), are to:Conduct monetary policy;
Supervise the financial system;
Issue bank notes;
Issue coins on behalf of the government;
Act as the banker for the government;
Be the central foreign exchange bank and, as such, to regulate the flow of payments to and from other countries; and to advise the Minister of Finance on financial matters.
Activities
The Bank performs these tasks through a variety of activities, which include:Formulating and implementing monetary policy and related measures through, among other things, regulating bank credit and liquidity;
- Supervising the activities of the commercial banks and other financial institutions by, inter alia, monitoring their liquidity and solvency to protect the interests of depositors and policyholders, and to maintain monetary and financial stability and integrity in Aruba;
- Managing Aruba's official gold and foreign exchange reserves;
- Regulating international payments according to the State Ordinance on foreign exchange transactions (A.B. 1990 No. GT 6);
- Bringing bank notes into circulation to meet the needs of businesses and the general public;
- Issuing treasury bills and government bonds as an agent for the government; and
Monitoring economic and financial developments.
See also
- Economy of ArubaEconomy of ArubaThe economy of Aruba is an open system, with tourism currently providing the largest percentage of the country's income. Because of tourism's rapid growth in the last 80 years, related industries like construction have also flourished. Other primary industries include oil refining and storage, as...
- Aruban florinAruban florinThe florin is the currency of Aruba. It is subdivided into 100 cents. The florin was introduced in 1986, replacing the Netherlands Antillean guilder at par.-History:...
- Bank of the Netherlands AntillesBank of the Netherlands AntillesThe Central Bank of Curaçao and Sint Maarten is the central bank of the former Netherlands Antilles. It is responsible for issuing the Netherlands Antillean guilder....
- Central Bank of Curaçao and Sint Maarten
- De Nederlandsche BankDe Nederlandsche BankDe Nederlandsche Bank is the central bank of the Netherlands. It is part of the European System of Central Banks .-History:...