CBCS raises pledging rate as foreign exchange reserves are expected to decline.

centralbank18092026WILLEMSTAD:--- The Centrale Bank van Curaçao en Sint Maarten (CBCS) has increased its pledging rate to 4.50 percent amid projections that the monetary union’s foreign exchange reserves will decline by approximately Cg. 332 million in 2026.

The decision was taken on September 17 against a backdrop of international trade uncertainty, geopolitical tensions and the possibility of renewed disruptions in global energy markets.

The pledging rate is the interest rate commercial banks pay when borrowing from the central bank.

The CBCS kept the reserve requirement unchanged at 18.50 percent, maintaining what it described as a balanced monetary policy position. It also announced adjustments to its Certificates of Deposit program to reduce the cost of absorbing excess liquidity from the banking system and improve the effectiveness of monetary policy.

The central bank’s decision followed the United States Federal Reserve’s September 25-basis-point increase in its policy rate. The Federal Reserve raised its target range for the federal funds rate to between 3.75 and 4.00 percent.

By increasing its pledging rate to 4.50 percent, the CBCS maintained a 50-basis-point spread above the U.S. federal funds rate.

Reserves Projected to Fall by Cg. 332 Million

Gross official reserves increased by Cg. 468.1 million through August 31, 2026. However, the CBCS expects that trend to reverse, with reserves projected to decline by approximately Cg. 332 million during 2026.

According to the central bank, the expected reduction mainly results from the Dutch State's withdrawals from its CBCS account and lower net capital transfers.

The Dutch State’s withdrawals involve repatriating funds accumulated in its CBCS account, primarily from interest and principal payments made by the governments of Curaçao and Sint Maarten.

Combined with higher projected imports of goods and services, the decline in reserves is expected to reduce the monetary union’s import coverage from 4.7 months at the end of 2025 to 4.3 months by December 2026.

Despite the reduction, import coverage is expected to remain above the three-month benchmark.

The CBCS said the monetary union’s foreign exchange position is still expected to remain strong and contribute to a stable external position. However, the central bank warned that significant risks remain.

Global trade tensions and uncertainty surrounding tariff policies could weaken external demand, increase import costs and create additional inflationary pressure in Curaçao and Sint Maarten.

More restrictive U.S. monetary policy could also tighten global financial conditions, increase external borrowing costs and limit access to financing for both countries.

Certificate of Deposit Program Adjusted

The CBCS also adjusted its Certificates of Deposit program to bring the instrument more closely in line with market conditions.

Certificates of Deposit are interest-bearing instruments the central bank issues to commercial banks to absorb excess liquidity for a specified period. The program provides banks with an alternative for placing part of their available liquidity locally instead of investing those funds abroad.

The instruments form part of the CBCS’s open-market operations and are used to manage liquidity in the banking system and influence the amount of credit commercial banks extend.

The changes are intended to reduce liquidity-absorption costs, improve liquidity management and strengthen the transmission of monetary policy while protecting external stability and maintaining adequate reserve coverage.

The adjustments will take effect at the beginning of October 2026. The CBCS said it will provide additional details in a forthcoming monetary circular.

The central bank pledged to continue monitoring domestic and international economic developments and adjust its monetary policy instruments as needed.


KPSM launches internal review after officer’s interaction with minor on school bus

middlefingerman18092026PHILIPSBURG— The Police Force of Sint Maarten (KPSM) has launched an internal review after a social-media video circulated showing an interaction between a police officer and a minor aboard a school bus.
KPSM said its management initiated the review based on the officer’s actions during the incident. The review will assess the officer’s conduct and the operational tactics used.
The police force emphasized that its officers are expected to act professionally and respectfully and to comply with established standards at all times.
“KPSM is a professional law enforcement organization and expects all its officers to conduct themselves professionally, respectfully, and in accordance with established standards at all times,” the police stated.
KPSM said it would refrain from making further comments while the internal review remains underway.

Perpetual Plastics and Freegan Food Foundation proud 2nd place winners of National Volunteer Awards in Netherlands.

epic18092026The Perpetual Plastics team and Freegan Food Foundation are proud 2nd-place winners of the National Volunteer Awards, hosted by the Association for Volunteerism in the Netherlands. The Perpetual Plastics Team won second place in the ‘Nature and Environment’ category, covering SDGs 13, 14, and 15. The Freegan Food Foundation earned second place in the ‘Livelihood Security’ category, under SDGs 1 & 10. There were 5 second-place categories to be won, with 66 nominees vying for the prizes, from a total of 322 entries.

The second-place prize was €3.000. The other 60 nominees received a € 1,000 third-place prize. Two organizations from Sint Maarten won 2nd place, a testament to the impact local NGOs have on the island, which is gaining more recognition throughout the Kingdom. Especially considering it is the first time the Dutch Caribbean islands were included in the nominations. The Foresee Foundation spearheaded the inclusion of the Dutch Caribbean islands, supporting more recognition and opportunities for NGOs locally and regionally.

As per the jury regarding Perpetual Plastics: 'The plastic washing up on St. Maarten often originates thousands of kilometers away—including from the Netherlands. Perpetual Plastics by EPIC, supported by over 1,000 volunteers, collects and processes this waste. Schoolchildren take home what they have learned, and people with disabilities find a place to contribute. There is hardly a better example of global responsibility: they clean up the mess we create. According to the jury, the organization sends a powerful message that extends far beyond its own coastline.'

As per the jury regarding Freegan Food: ‘On Sint Maarten, the Freegan Food Foundation also saves hundreds of kilograms of food each week that would otherwise go to waste. The organization serves as a food bank, clothing bank, and second-hand shop all in one, but its primary focus is helping families move step-by-step toward self-sufficiency. The jury was moved by the direct nature of this assistance: no waiting lists, no complex rules—just consistent, dedicated effort week after week. Fighting poverty, without the paperwork.’

The United Nations has also declared 2026 the ‘Year of the Volunteer’. This prize recognizes that work by highlighting and celebrating the social impact of volunteer efforts and how they benefit society.

Both organizations would hereby like to congratulate and thank all their volunteers who have dedicated their time and passion to the organizations and its projects over all these years. Volunteerism has always been the backbone of both organizations, and without it, they would not likely have achieved half of what they have today.

Ottley opposes disciplinary action against Officer Hodge after School Bus incident.

omarottley07092026PHILIPSBURG:---  Member of Parliament Omar Ottley says he does not support disciplinary action against Officer Hodge over a school bus incident involving a minor who allegedly made an obscene hand gesture toward police officers.

Ottley said police procedures must be respected and concerns about the officer’s conduct should be reviewed objectively. He argued, however, that the student’s alleged behavior should also be part of the public discussion.

“We cannot continue to sound the alarm about youth violence, youth crime, fighting in our schools and the growing lack of discipline among some of our young people, while at the same time creating an environment where blatant disrespect for authority is treated as acceptable behavior,” Ottley said.

According to Ottley, the incident raises a broader question about the standards expected of young people and the role of parents, educators, community leaders and public officials in reinforcing them. He said respect for police officers should be considered alongside respect for teachers, parents, bus drivers and other members of the community.

Ottley emphasized that officers must act professionally and proportionately, especially when dealing with minors. He said any departure from established protocols should be examined, but cautioned against judging the officer’s actions without considering the circumstances of the encounter.

“There may be instances where established protocols could have been followed differently, and those matters can and should be discussed,” he said. “But policing also requires judgment.”

The Police Force of Sint Maarten has said its management initiated an internal review of the officer’s conduct and operational tactics after a video of the interaction circulated on social media. KPSM said it expects officers to act professionally and respectfully and would refrain from further comment while the review is underway.

Ottley called for a wider conversation among police, schools, parents and youth organizations about discipline and how young people and officers interact. He reiterated his support for accountable policing while maintaining that, based on the circumstances as he understands them, Officer Hodge should not face disciplinary measures.

Attempted Armed Robbery on Back Street.

armedrobbery19092026PHILIPSBURG:--- On Friday, September 18, 2026, shortly after 11:30 p.m., the Central Police Dispatch received a report of an attempted armed robbery at a residence located on Back Street.

Police officers were dispatched to the location. Upon arrival, officers were informed that three male suspects, dressed in dark clothing and reportedly armed with firearms, had attempted to rob the residence.

For reasons that are still under investigation, the suspects did not complete the robbery and fled the area in an SUV.

The KPSM is asking anyone who witnessed the incident or has information that could assist the investigation to come forward.

You can provide information to the Police Force of Sint Maarten by calling 542-2222 or anonymously through the KPSM Tip Line at 9300.

KPSM reminds the public: See Something, Say Something.


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