Will Await Operational Audit on Central Bank and Move Forward From There
Philipsburg:--- The Prime Minister of St. Maarten the Honorable Sarah Wescot Williams explained the recent discussions in the community centered on dollarization. The Prime Minister explained on her weekly radio show One on One with the Prime Minister that the unsolicited advice that the Social Economic Council gave regarding dollarization has reignited the talk of dollarization for the Country. "The Social and Economic Council recently gave an unsolicited advice on the monetary union between Curacao and St Maarten, which of course was an agreement which was made coming into 101010. It was decided by the two countries of Curacao and St. Maarten that we will share a central bank and then because of that will de facto have a monetary union. However, when you take into consideration the issue of the appointment of board members to the Central Bank and what that took and is taking to get done both countries have questioned the effectiveness of that union," commented the Prime Minister.
The Prime Minister reiterated that she still believes in the monetary union and a Central Bank between the two countries. "Two autonomous countries within the Kingdom have decided that there is strength in numbers, especially in monetary matters and thus we agreed to work together on a monetary union on the basis of equality. However, it has not worked like that in practice and so we had so many issues, again in particular with regards to the appointment of board members. Coupled to that was the question of what currency this union would have and what currency St. Maarten would have. As agreed to in 101010 there would be a Dutch Caribbean guilder for this monetary union for Curacao and St. Maarten. No attempts for a monetary union have yet been made particularly due to those issues. The presidency of the Central Bank was also a matter of much discussion and criticism. Finally we have now agreed that an operational audit will be conducted of the bank, with some two weeks ago the agreement being arrived at on who would execute the operational audit," continued the Prime Minister.
The Prime Minister also explained that St. Maarten's economy is in practice a dollarized economy, despite the country having an official, stable Netherlands Antillean guilder. "The Dutch Caribbean Guilder would be another name for the Antillean guilder pegged to the us dollar. As long as our currency remains how it is any currency vis a vis the dollar should not be an issue. However, the Social and Economic Council did come up with the un asked for advice which has become public and advised that St. Maarten get out of the union. Where do we stand at this moment? Before May 2012 there was a clear preference for dollarization, however that issue was never taken to the point of a decision support by legislation in parliament but that Government was leaning in that direction. Currently we are waiting on the operational audit of the joint monetary union to make the decision whether we will continue cooperation or would be looking at our own agency. If we do that will we then go over to formal dollarization. But up to this point both Governments have indicated that they will be awaiting the result of the union," concluded the Prime Minister.
From the Cabinet of the Prime Minister
