National Alliance Senator/councilman George says that he is not an economist and cannot give a concrete explanation on the consequences of dollarization. Some of the discussions mentioned such as St. Maarten’s major use of the currency (US tourism) and the fact that Saba St. Eustatius and Bonaire have already opted for the dollar are valid ones. What was not mentioned thus far and maybe this will take place on Curacao during a presentation given on dollarization on Monday August 24 at the Central Bank building next week is the issue of seigniorage. For example the cost of paying to have the money printed since it is not our currency, the fact that the interest rates on savings in guilders at present are much higher than in dollars.
Furthermore what are the requirements going to be that will be set by the Federal Reserve and can we meet them? Another important factor that should be looked into has to do what happened in the Netherlands with the introduction of the Euro. There were numerous complaints from the public of businesses and other organizations changing the sign in front of the products etc. from Hfls. to Euros. Also how will the salaries be calculated? Will someone who at present is earning Nafls.3 600, be earning $3600,- or will they be earning $2000 instead? At present most rents are charged in dollars so that will not be a major problem. But, will this mean no central Banks for the countries to be? Pantophlet said he is almost sure that these have been addressed by the experts but one never knows things can be overlooked at times.
It is good that government will be present to hear what the probable consequences are going to be. Because we should not forget that a political decision was taken to have one Central Bank with equal authority and a rotating president. It will be interesting to hear what discussions will be taken in the future on this matter.
