Finance:Caribbean guilder

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Short description: Planned currency for Curaçao and Sint Maarten
Caribbean guilder
Cg
ISO 4217
CodeTemplate:ISO 4217/maintenance-category (numeric: )
Subunit0.01
Unit
Pluralguilders
Denominations
Subunit
 ​1⁄100cent
Plural
 centcents
Banknotes
 Freq. used10, 20, 50, 100, 200 guilders[1]
Coins1, 5, 10, 25, 50 cents; 1, 5 guilders[1]
Demographics
Date of introduction2024 (official)
2025 (reported)[1]
ReplacedNetherlands Antillean guilder
User(s) Curaçao
 Sint Maarten
Issuance
Central bankCentral Bank of Curaçao and Sint Maarten (CBCS)
 Websitewww.centralbank.cw
PrinterCrane Currency
 Websitewww.cranecurrency.com
MintRoyal Canadian Mint
 Websitewww.mint.ca
Valuation
Pegged withUnited States dollar = 1.79 XCG

The Caribbean guilder (code: XCG;[1] abbreviation: Cg; Dutch: Caribische gulden; Template:Lang-pap) is a planned currency of Curaçao and Sint Maarten, two constituent countries of the Kingdom of the Netherlands, officially slated for introduction in 2024. The Caribbean guilder is set to replace the Netherlands Antillean guilder (ANG) at par and be pegged to the United States dollar . The currency has an official launch scheduled for the second half of 2024;[1] however, the launch has reportedly been pushed to 31 March 2025, pending confirmation from the ministry of finance.[2] It is divided into 100 cents (Template:Lang-pap).

In November 2020, it was announced that the Caribbean guilder would come into circulation the following year,[3] but it was delayed several times. The cost of the design and production of the Caribbean guilder will be approximately 15 million ANG and cash payments in ANG will be accepted for three months following the introduction of the new currency.[1]

Naming

The Caribbean guilder will use the ISO 4217 code of XCG, with the initial X used for supranational currencies.[1] The Central Bank of Curaçao and Sint Maarten has announced its official abbreviation as Cg.[1][4]

Negotiations

The Netherlands Antillean guilder continued to circulate after the dissolution of the Netherlands Antilles and plans to implement the Caribbean guilder were not finalized until both countries would agree to have a common currency[5] At the time, it was reported that the new currency would be abbreviated CMg (for Curaçao, Sint Maarten guilder) and would be pegged to the United States dollar at the same exchange rate as the Netherlands Antillean guilder (US$1 = 1.79 NAg = 1.79 CMg).[6] As the BES islands (Bonaire, Sint Eustatius and Saba) adopted the U.S. dollar directly on 1 January 2011, the introduction of the CMg would have meant the end of the circulation of the Netherlands Antillean guilder.

In April 2014, Curaçao and Sint Maarten agreed to look into the possibility of Curaçao having its own central bank. As long as further negotiations continued, the Caribbean guilder would not be introduced.[7] In July 2015, the Minister of Finance of Curaçao, José Jardim, stated that research on a monetary union between Curaçao and Sint Maarten was not a priority.[8] Former Curaçao MP Alex David Rosaria said that a major problem with the proposed union was the lack of a forum to discuss macroeconomic coordination (as there is for the Eastern Caribbean dollar).[9]

In 2018 the finance minister of Sint Maarten stated that there were only two years of reserve Antillean guilder banknotes remaining and that the islands would need to make a decision soon.[10] The islands also considered adopting the U.S. dollar or euro.[11]

In November 2019, Curaçao Minister of Finance Kenneth Gijsbertha confirmed the introduction of the Caribbean guilder in 2021,[12] and the Central Bank officially announced it a year later.[3] By August 2021, it was reported that the new guilder would have expected a launch in either 2023 or 2024.[13] In September 2022, CBCS wanted the guilder introduced in 2024.[14] Then by July 2023, that was postponed to 2025 at the latest.[15]

Organisation

The currency is to be issued by the Central Bank of Curaçao and Sint Maarten (the successor of the Bank of the Netherlands Antilles) which is chaired by a chairperson chosen by both islands' prime ministers. The two islands would also appoint six further members of the supervisory board of directors. The currency would be phased in over three months.[16]

Coins and banknotes

The Caribbean guilder will have coins minted by the Royal Canadian Mint in the following denominations: 5 guilders, 1 guilder, 50 cents, 25 cents, 10 cents, 5 cents, and 1 cent.[1][17] Banknotes will be printed by Crane Currency and made of cotton like the Antillean guilder but more durable, with denominations of 200 guilders, 100 guilders, 50 guilders, 20 guilders, and 10 guilders.[1] To deter counterfeiting, there will be no public design competition for the currency.[18]

The ​2 1⁄2-guilder coin and the 25-guilder notes present in the Netherlands Antillean guilder series would not be issued and 20 and 200 guilder banknotes will be added.[16]

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 "Frequently Asked Questions". Willemstad: Central Bank of Curaçao and Sint Maarten. 17 July 2023. https://exch.centralbank.cw/functions/banknotes-coins/caribbean-guilder/frequently-asked-questions. 
  2. ↑ "New launch date for Caribbean Guilder delayed to 2025". Curaçao Chronicle (Willemstad). 28 September 2023. https://www.curacaochronicle.com/post/local/new-launch-date-for-caribbean-guilder-delayed-to-2025/. 
  3. ↑ 3.0 3.1 "Central Bank announces introduction of Caribbean Guilder in 2021". StMaartenNews.com. 15 November 2020. https://stmaartennews.com/news/central-bank-announces-introduction-of-caribbean-guilder-in-2021/. 
  4. ↑ "Official abbreviation for Caribbean Guilder announced". Curaçao Chronicle (Willemstad). 30 May 2023. https://www.curacaochronicle.com/post/local/official-abbreviation-for-caribbean-guilder-announced/. 
  5. ↑ "Curacao wants its own Central Bank". Curacao Chronicle. http://curacaochronicle.com/main/curacao-wants-its-own-central-bank/. 
  6. ↑ "Nieuwe Caribische gulden wordt CMg" (in Dutch). persbureaucuracao.com. 21 October 2010. http://persbureaucuracao.com/index.php?option=com_content&view=article&id=5347:nieuwe-caribische-gulden-wordt-cmg&catid=1:staatkunde&Itemid=75. 
  7. ↑ "Onderzoek naar eigen Centrale Bank voor Curacao" (in Dutch). BearingPoint Caribbean. 1 April 2014. http://www.bearingpointcaribbean.com/onderzoek-naar-eigen-centrale-bank-voor-curacao/. 
  8. ↑ "Jardim: Research Monetary Union Is Not A Priority". Curaçao Chronicle. 15 July 2015. http://curacaochronicle.com/main/jardim-research-monetary-union-is-not-a-priority/. 
  9. ↑ "Dysfunctional Union Curaçao & St. Maarten". Curaçao Chronicle. 2 March 2018. http://curacaochronicle.com/columns/dysfunctional-union-curacao-st-maarten/. 
  10. ↑ "Banknotes and coins should soon be replaced". Curaçao Chronicle. 15 February 2016. http://curacaochronicle.com/economy/banknotes-and-coins-should-soon-be-replaced/. 
  11. ↑ "Only two years worth of Antillean guilders left". The Daily Herald. 13 June 2018. https://www.thedailyherald.sx/islands/77595-only-two-years-worth-of-antillean-guilders-left. 
  12. ↑ "Caribbean guilder becomes reality". Curaçao Chronicle. 14 November 2019. https://www.curacaochronicle.com/post/local/caribbean-guilder-becomes-reality/. 
  13. ↑ "Doornbosch: 'Curaçao economy for 80 percent of foreign exchange reserves and Sint Maarten 20 percent'". Curaçao Chronicle. 17 August 2021. https://www.curacaochronicle.com/post/local/doornbosch-curacao-economy-for-80-percent-of-foreign-exchange-reserves-and-sint-maarten-20-percent/. 
  14. ↑ "CBCS moves ahead with the Introduction of the Caribbean Guilder". Centrale Bank van Curaçao en Sint Maarten. 5 September 2022. https://cdn.centralbank.cw/media/press_releases_2022/20220905_pb2022_033_cbcs_continues_project_cmg_en.pdf. 
  15. ↑ "Introduction of Caribbean Guilder delayed again, possibly pushed to 2025". Curaçao Chronicle. 13 July 2023. https://www.curacaochronicle.com/post/local/introduction-of-caribbean-guilder-delayed-again-possibly-pushed-to-2025/. 
  16. ↑ 16.0 16.1 "FAQ - Central Bank". Central Bank of Curaçao and Sint Maarten. http://www.centralbank.cw/faq#currency. 
  17. ↑ "Crane Currency and the Royal Canadian Mint to Supply Caribbean Guilder Currency" (PDF) (Press release). Willemstad: Central Bank of Curaçao and Sint Maarten. 26 April 2023. Retrieved 28 November 2023.
  18. ↑ "No public participation in Caribbean Guilder design". Curaçao Chronicle (Willemstad). 21 August 2023. https://www.curacaochronicle.com/post/local/no-public-participation-in-caribbean-guilder-design/. 

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